PH-EU economic ties remain strong

Department of Trade and Industry (DTI) (PNA photo)

MANILA — The Department of Trade and Industry (DTI) and the European Chamber of Commerce of the Philippines (ECCP) reaffirmed strong economic relations of the Philippines and the European Union (EU).

On the sidelines of the EU-Philippines Business Summit in Parañaque City Tuesday, DTI Secretary Ramon Lopez told reporters that the Philippines continues to engage with the EU on Generalized Scheme of Preferences Plus (GSP+) and possible free trade agreement (FTA) with the bloc.

He added that the strong relations between the Philippines and EU can be reflected on the robust exports of the Philippines to the EU market as well as the increasing investments of European countries to the Philippines.

“Economic relations have been good. Even GSP+ utilization has increased from 2015 to 2016, and we expect better utilization this year. Because more and more exporters are taking advantage of the GSP+ as they get to be aware of the privilege,” the DTI chief noted.

DTI Undersecretary Ceferino Rodolfo, said in a separate interview, that Philippine exports to EU may sustain the 30-percent growth towards the end of the year given the exports growth of 36 percent during the first half of 2017.

Rodolfo said with the improvement in the economy of EU, robust demand for Philippine exports in the EU market is expected, particularly for those benefitting from the GSP+ Program.

“The DTI is continuously undertaking advocacy campaign for the utilization of GSP+ among its exporters particularly in the rural communities,” he added.

He said some 2,259 exporters from the Philippines are shipping their products to the EU market.

Moreover, ECCP President Geunter Taus echoed that talks between the Philippines and the EU for the possible FTA remains on track.

“The negotiations for the FTA is still ongoing and everything’s on track. Only time will tell what is going to happen next. I think we can peacefully say that negotiations are ongoing,” Taus added.

He said European businesses remain keen on doing business in the Philippines despite the recent comments of President Rodrigo Duterte on EU.

“We know rhetoric is rhetoric. And our statement is loud and clear. The issue has been addressed adequately. I think that should be the end of it,” Taus added.

“We, in business, do not mingle in politics. That’s for the politicians to do,” he added.

The ECCP chief also said that there will be a business delegation composed of 40 European firms coming to the Philippines next week.

They will be exploring opportunities here in the energy sector, Taus said.

From January to June this year, 29 percent of the total approved investments in the country were sourced from the EU.

In the same period, Philippine exports to the EU jumped by 36 percent compared to last year with revenues amounting to USD4.6 billion.