EU ready for free trade with PHL
BusinessMirror | Monday, 13 February 2012
EU ready for free trade with PHL
Estrella Torres / Reporter
The European Union is ready to negotiate a free-trade agreement (FTA) with the Philippines as soon as essential reforms to improve investment climate, such as protection of intellectual-property rights, legal certainty in protecting investors and transparency in contracts are in place.
EU Ambassador to the Philippines Guy Ledoux said the EU is concluding free-trade negotiations with Malaysia and Singapore and is now eyeing similar agreements with Indonesia and Vietnam. He said the EU is aware of the Philippines’s interest to negotiate a similar trade deal with the EU.
He said investment climate will be conducive if the government took up the following measures: IPR protection through legal means; a level playing field for companies through effective, transparent competition policies and legislation that will attract efficient and innovative businesses; transparent rules and procedures for public procurement; legal certainty and protection for domestic and foreign investors; and conducive customs procedure that will ensure smooth flow of goods.
“FTAs need to take these issues into account to be worth the effort of negotiations. The EU has been always quite open about that,” said Ledoux during a forum on FTA hosted by the F. Naumann Stiftung held over the weekend in Makati City.
Ambassador Ledoux said the EU supports the government’s commitment to transparency and stakeholder consultations with view to any future bilateral FTA negotiations.
“We are aware that the Philippines is interested in an FTA with the EU. So let me re-emphasize here that the EU is willing to do engage in discussions when the Philippines is ready,” said Ledoux.
He stressed that, “It is Europe’s own experience that trade policy based on openness works. It is the key to unlocking competitiveness and growth. We realize this is not an easy process and constant vigilance is called for. But it is the right course for growth.”
Ledoux said the issue is not whether these business and trade environment conditions are needed to attract investments, but how quickly economies can implement them effectively.
Europe is a major market for Philippines agriculture and fishery products, said Ledoux with 75 percent of all EU coconut oil imports coming from the Philippines worth P21 billion. Fisheries such as tuna and tropical fruits are also among the top exports to the EU with P7.5 billion and P4.8 billion annual revenues, respectively.
Ledoux said bilateral trade between the EU and the Philippines suffered a setback with Philippine exports to EU down by 2 percent in 2009 but bounced back to pre-crisis level and now up by 40 percent in 2010. He attributes the decline to the strong decline in the electronic sector related to product cycle in this industry.
“As you know the EU is willing and ready to enter into FTA negotiations with any Asean member, able and willing to negotiate a deep and ambitious FTA,” said Ledoux.
He said the Philippines is in dire need of infrastructure investment, but there is also room to expand investment in manufacturing and services.
“We have heard about civil-society concerns about FTAs in the Philippines, which are said to be based on previous negative experiences in FTA negotiations. Maybe there are issues and misunderstandings needing clarification. But as regards the EU position we think that all issues of concern can be addressed by dialogue and exchange of information,” said the EU envoy.
EU is composed of 27 economies, including some of the world’s most developed nations like Germany, Italy, Spain, Luxembourg, Belgium and France.
