With the resumption of the free trade agreement (FTA) negotiations, the Philippine Economic Zone Authority (PEZA) is bullish that more investors from European Union (EU) countries will explore trade and investment opportunities in the Philippines this year and onwards.

PEZA Director General Tereso O. Panga said, “With the initiatives of President Ferdinand Marcos Jr. and his economic team in constantly positioning the Philippines in the global investment landscape, we are positive that investors from the EU will look at the country for their investment ventures especially with the presence of an FTA.”

At present, there are a total of 202 PEZA-registered projects with equity from EU countries generating about PhP 300 Billion of cumulative investments, US$ 12 Billion of exports, and creating more than 50,000 direct jobs.

“The FTA would strengthen both the Philippines and the EU’s bilateral trade and economic relations, making an ecosystem fit for our agile investors given that the EU is the Philippines’ fifth largest trade partner,” added the PEZA Chief.

On March 18 2024, Department of Trade and Industry (DTI) Secretary and PEZA Board Chairman Alfredo E. Pascual and European Commission Executive Vice President and Trade Commissioner Valdis Dombrovskis announced the resumption of the Philippines-European Union Free Trade Agreement (PH-EU FTA) negotiations.

The PH-EU FTA seeks to provide enhanced market access for goods, services and investments, going beyond the benefits of the Generalized System of Preferences Plus (GSP+) scheme. By committing to rules and higher standards, the FTA will also enhance competitiveness and foster sustainable, inclusive growth and development in the Philippines.

Under the GSP+, the Philippines has been benefitting from zero tariff on two-thirds of all product categories entering the European Union market since 2014. The Philippines is proposing a four-year extension of the EU GSP+ which is set to expire by the end of the year.

The PEZA Chief expressed, “The EU FTA and the renewed GSP+ status will help the Philippines in its bid to attract EU FDI from diverse strategic industries, catering to both domestic and export markets. As one of the investment promotion agencies in the country, this will likewise be instrumental in PEZA’s quest towards positioning the Philippines as the ideal base for offshore operations by EU companies eyeing to penetrate the much vibrant ASEAN and AsPac markets.”