Brussels: The European Union and the Philippines agreed on Tuesday to
start free-trade talks next year in Europe’s latest effort to tap into
Asia’s faster economic growth.
In contrast to weakness in Europe, the Philippine economy has outpaced most of its Asian neighbours in the past two years and has proven resilient to China’s slowdown.
“We need to make sure our companies enjoy the right conditions to seize the great potential of that market of 100 million consumers,” the EU’s trade chief Cecilia Malmstrom said of the nation of islands, following the agreement with Philippine Secretary of Trade and Industry Gregory Domingo.
A deal would follow the EU’s accords with Singapore, Vietnam and South Korea, part of a plan by the world’s biggest trading bloc to sign deals with the 10-member Association of South East Asia (ASEAN), strongly supported by Britain and Germany.
After years of stalemate, confirmed by the split at the weekend over world trade talks in Nairobi, countries are seeking bilateral trade deals, rather than a global agreement.
While the Philippines ranks just 44th of the EU’s many trade partners, commerce with Southeast Asia’s fifth-largest economy has been growing at a double-digit rate, taking it to over 12 billion euros ($13 billion) last year.
Just as the United States has sought to shift its focus to Asia, the European Union is also trying for a trade deal with Japan and is in talks to deepen investment ties with China, potentially a precursor to a free-trade accord.
For the Philippines, the EU is its fourth-largest trading partner and an accord should provide access to the EU’s 500 million consumers, particularly for the country’s agricultural sector that accounts for more than a tenth of economic output.
However, as in the EU’s other trade negotiations, the proposed accord will seek to go well beyond the import and export of goods to include protection of intellectual property rights, environmental protection and social issues.
That could mean negotiations take time and following the failure of world trade talks, the European Union is wary of timetables. The first round of negotiations is set for the first half of 2016 in the Philippines.
In contrast to weakness in Europe, the Philippine economy has outpaced most of its Asian neighbours in the past two years and has proven resilient to China’s slowdown.
“We need to make sure our companies enjoy the right conditions to seize the great potential of that market of 100 million consumers,” the EU’s trade chief Cecilia Malmstrom said of the nation of islands, following the agreement with Philippine Secretary of Trade and Industry Gregory Domingo.
A deal would follow the EU’s accords with Singapore, Vietnam and South Korea, part of a plan by the world’s biggest trading bloc to sign deals with the 10-member Association of South East Asia (ASEAN), strongly supported by Britain and Germany.
After years of stalemate, confirmed by the split at the weekend over world trade talks in Nairobi, countries are seeking bilateral trade deals, rather than a global agreement.
While the Philippines ranks just 44th of the EU’s many trade partners, commerce with Southeast Asia’s fifth-largest economy has been growing at a double-digit rate, taking it to over 12 billion euros ($13 billion) last year.
Just as the United States has sought to shift its focus to Asia, the European Union is also trying for a trade deal with Japan and is in talks to deepen investment ties with China, potentially a precursor to a free-trade accord.
For the Philippines, the EU is its fourth-largest trading partner and an accord should provide access to the EU’s 500 million consumers, particularly for the country’s agricultural sector that accounts for more than a tenth of economic output.
However, as in the EU’s other trade negotiations, the proposed accord will seek to go well beyond the import and export of goods to include protection of intellectual property rights, environmental protection and social issues.
That could mean negotiations take time and following the failure of world trade talks, the European Union is wary of timetables. The first round of negotiations is set for the first half of 2016 in the Philippines.
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