Veron sees prelim phase of PHL-EU FTA talks done by end-2023

The preliminary phase of the discussions for a free trade agreement (FTA) between the Philippines and the European Union (EU) is on track to be completed as targeted by the end of the year, EU Ambassador Luc Veron said Wednesday.

Speaking with reporters in Makati City, Veron said the preliminary phase includes laying out what the two parties expect in a possible FTA, including what they believe to be feasible and what to leave out.

“This is a preliminary phase which is very important if you want a very efficient negotiation. We need to know on which chapter we are going to negotiate and basically what is feasible, what is less feasible, to determine the level of ambition,” he said.

“It’s on track on terms of the two sides having held a number of meetings, looking through the different chapters, and by the of the year, they will be able to say ‘Okay, this is where we stand in terms of ambition,’ and the decision will be made whether to start negotiation in earnest,” he added.

Veron’s remarks are in line with those made by Trade Secretary Alfredo Pascual in July when he said this would include reviewing potential complementarities and sharing expectations with one another.

The Philippines aims to complete the negotiations for the FTA by the end of the term of President Ferdinand “Bongbong” Marcos Jr. in 2028.

The relaunching of negotiations was announced by European Commission President Ursula von der Leyen during her visit in July.

The Philippines presently has a trade arrangement with the EU’s Generalized System of Preference Plus (GSP+), which implements reduced or zero tariffs on some 6,274 locally-made exports to the EU market.

The GSP covers developing countries, but should the Philippines shift to an upper-middle-income country, it will no longer be eligible for coverage under such an arrangement.

Just last July NEDA Secretary Arsenio Balisacan said the Philippines is on track to move up to upper-middle income economy status by 2025.

In the same interview, Veron said the European Commission has adopted a report that welcomes the proposal of the European Commission to extend the GSP+ scheme until 2027, similar to an announcement made by Pascual earlier in the day. — BM, GMA Integrated News