Agri concerns stall PH trade talks with EU, Chile

MANILA, Philippines — Agricultural provisions have emerged as the main sticking point in the Philippines’ ongoing free trade agreement (FTA) negotiations with the European Union (EU) and Chile, although the Department of Trade and Industry (DTI) remains hopeful of concluding both deals before the Asean Summit in November.

In an interview with reporters, Trade Secretary Cristina Roque said Philippine and EU negotiators failed to reach an agreement during the seventh round of talks in Brussels from June 29 to July 3.

READ: Revised PH-Japan free trade deal seen by November

While the DTI had initially identified the round as a potential final negotiating session, Roque said discussions on agricultural provisions reached a “deadlock,” an issue that both sides are now trying to resolve, including at the ministerial level.

“There was a bit of a deadlock … We’ve already come up with a compromise on what to do,” she told reporters, adding that she has also been coordinating with Agriculture Secretary Francisco Tiu Laurel Jr.

“There are continuous talks, even on my level,” she added.

Another sticking point in the EU negotiations was government procurement.

According to Roque, both sides have since resolved the issue after agreeing to implement the provision in phases. She added that the EU agreement will be the Philippines’ first trade pact to include provisions on government procurement.

READ: Gov’t eyes big wins from new trade deals

An FTA with the EU is expected to unlock as much as $12 billion in export potential. It would also upgrade the Philippines’ current trade arrangement under the EU’s Generalized Scheme of Preferences Plus, which grants preferential market access to more than 6,000 Philippine product lines.

Roque said agricultural issues have likewise emerged as a hurdle in the Philippines’ FTA negotiations with Chile.

‘No major issue’

Earlier, Trade Undersecretary Allan Gepty, the country’s chief trade negotiator, had said negotiations could conclude as early as April, noting at the time that there was “no major issue” that could derail the talks.

Roque declined to identify the specific agricultural issues being discussed with either the EU or Chile, saying negotiations are ongoing.

“Definitely we want to finish the talks this year,” she said. “We’re still on track.”

Once concluded, the Chile agreement would mark the Philippines’ first FTA with a Latin American country.

Apart from the EU and Chile negotiations, the DTI is also pursuing an FTA with Canada and a preferential trade agreement with India.

The Philippines is likewise taking part in preliminary discussions to accede to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership while working to implement the updated Japan-Philippines Economic Partnership Agreement by November. /atm