EU eyes ‘ambitious’ trade deal with PH

The European Union is planning to forge an ambitious free-trade agreement with the Philippines covering strategic areas in services, investments and procurement—similar to the deals it has already concluded with Canada and Vietnam.

Walter van Hattum, head of the economic and trade section of the EU Delegation to the Philippines, said in an interview that as with all negotiating groups, the EU has always stressed the need for consistency and coherence with what the 28-member bloc has already negotiated in its bilateral free trade agreements (FTAs), particularly with other members of the Asean, in view of the long-term objective to conclude an EU-Asean region-to-region FTA.

The negotiations, however, would also to take into account the specifics of the bilateral relations between the EU and the Philippines, van Hattum added.

So far, the two parties completed in May the first round of negotiations that, according to van Hattum, “showed a positive outlook and helped prepare the ground to achieve good progress during the next round  foreseen for later this year in the Philippines.”

“The round took place in a good atmosphere and with the main objective to get clarity on respective approaches, ambitions and expectations in the different negotiating areas. The round included meetings dedicated to trade in goods, rules of origin, sanitary and phytosanitary measures, services and investment, intellectual property rights (including geographical indications), competition, trade and sustainable development and dispute settlement,” van Hattum told the Inquirer.

The Department of Trade and Industry was reportedly looking at December to hold the second round of talks with the EU. But prior to this round, both parties may likely exchange formal text proposals in some negotiating areas.

In May, EU Ambassador Franz Jessen disclosed that the 28-member bloc might likely seek favorable tariff concessions for the export of its motor vehicles and other industrial goods to the Philippines. The EU may also look at leveraging on the proposed trade agreement to set up more manufacturing facilities in the Philippines and to take advantage of the country’s young, skilled and English proficient labor force.

Meanwhile, van Hattum assured that the ongoing FTA negotiations would not likely be affected by Britain’s decision to leave the EU, dubbed as Brexit.

“The EU continues its trade agenda with partners around the world as the outcome of the Referendum has not changed anything for the time being. The UK remains a member of the EU with all rights and obligations of a member state until the terms of its exit are agreed. EU laws continue to apply in full to the UK and in the UK until it is no longer a member. The argument for an active and open trade policy has not changed either,” van Hattum explained.

“Trade is vital for the EU, whether it has 28 or 27 member states. As the world economy becomes more interconnected, we continue to ensure the EU economy is ready, via an active trade policy, and the EU will remain the world’s largest trader and one of the largest markets,” he added.