Policy reforms key to talks with EU

THE EUROPEAN Union is hoping to see the Philippines implementing crucial reforms, including those in customs processes and policies on infrastructure projects, before the start of the planned free trade negotiations between the country and the EU this year.

Walter van Hattum, head of the economic and trade section of the EU Delegation to the Philippines, also said in an interview with the Inquirer that the EU was looking forward to seeing the implementation of the Competition Law and the adoption of crucial economic reforms that could support the Philippines’ economic growth and development goals.

“We look forward to the adoption of various initiatives, such as the Customs Modernization and Tariff Act and the Public-Private Partnership (PPP)-law. As negotiations are yet to start, it would be too early to discuss concrete issues related to the (free trade) negotiations,” he said.

The Philippines and the EU announced in December last year their intention to start free trade agreement (FTA) talks this year.

Having a bilateral agreement with the 28-member bloc was deemed important for the Philippines, according to van Hattum, as it would help the country corner a far more significant share of direct investments infused by companies based in the EU into the region.

“While the EU is by far the largest investor in the country, only 3 to 4 percent of its investments in the Asean go to the Philippines at the moment. So there is a lot of potential to increase. An agreement will also help companies, be it European or Filipino , with their (often global) supply chains and it enable small and medium sized companies in both our economies to take advantage of the currently underutilized opportunities,” the EU trade official said.

The Philippines is hoping to secure permanently the preferential trade benefits that local enterprises are enjoying under the European Union’s generalized scheme of preferences through the prospective FTA.

In a separate interview, Trade Undersecretary Ceferino S. Rodolfo told the Inquirer that the upcoming FTA negotiations with the EU could serve as an avenue for local negotiators to secure the benefit of zero tariffs for more than 6,200 goods, which at present are enjoyed under the EU GSP+ scheme.