Hanoi (VNA) – The European Union (EU) expects investment flows into the Philippines to rise significantly once a bilateral free trade agreement (FTA) is concluded, as current EU investment in the Southeast Asian nation remains comparatively modest relative to regional peers.
Justyna Lasik, head of economic and trade section of the EU Delegation to the Philippines told reporters on the sidelines of the launch of the Geographical Indications (GI) logo, that the EU considers the FTA as a tool to promote investments and attract European investors who might not be that familiar with the Philippines.
According to her, while European investors entering ASEAN usually start with Singapore, the EU sees many opportunities in the Philippines. She suggested EU firms help develop renewable energy in the country given the bloc’s expertise in solar and wind energy.
EU firms can also help local agriculture through technological developments in the bloc, Lasik said, adding that the EU sees investment opportunities in semiconductors and electronics.
At present, the Philippines is a beneficiary of the EU Generalised Scheme of Preferences Plus (GSP+), which allows the duty-free entry of 6,274 products to the bloc.
The GSP+ has helped increase trade and investment between the Philippines and the EU. Through the FTA, the EU wants to promote the Philippines as an investment destination to European firms, especially in the context that the Philippine government is making many legislative changes to encourage investments.
Lasik said that GIs are part of the FTA negotiations between the Philippines and EU. They do not just provide monetary benefits, but also promote product quality and consumer protection. The launch of the GI logo is expected to help strengthen the Philippines’ GI system./.
Philippines, EU aim to conclude free trade agreement negotiations
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