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EU-PHILIPPINES FREE TRADE AGREEMENT (FTA)

In “A global Europe: Leveraging our power and partnerships”

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Background and state of play

First negotiations for an FTA with the Philippines were officially launched in December 2015, based on the 2007 ASEAN negotiating directives. The first round of negotiations took place in May 2016 and the second in February 2017.

The objective of the negotiations has been to reach an agreement similar in coverage to those already concluded with other ASEAN member states, namely with Singapore and Vietnam.

The Sustainability Impact Assessment (SIA) Draft Final Report carried out for the Commission was published in May 2019. The SIA analyzed the potential economic, social, human rights and environmental impacts of the agreement.

In February 2020, the Commission presented a biennial report to the European Parliament and to the Council on the Generalised Scheme of Preferences (GSP), covering the period 2018-2019. This was accompanied by an assessment (among other GSP+ beneficiary country assessments) of Philippines' progress towards the implementation of 27 international conventions relevant for GSP+ trade preferences.

Following the presidential elections in the Philippines in May 2022, relations between the EU and the Philippines have slowly normalized again. Following the visit by Commission President von der Leyen to Manila on 31 July 2023, both sides confirmed their intention to explore FTA negotiations and announced that they will shortly kick-off a bilateral 'scoping process'.

Main negotiation issues

During discussions in the first negotiation round, which focused on such issues as rules of origin, sanitary and phyto-sanitary (SPS) measures, services and investment, the EU presented its position based on earlier negotiations conducted with Vietnam and Singapore. During the second negotiation round, progress was achieved in several negotiation areas, and it was decided that a number of negotiation groups will continue working ahead of the next round. In March 2017, the Commission published short factsheets to accompany the above-mentioned proposals for legal texts. When announcing the July 2023 decision to aim for a scoping exercise, the Commission underlined that the EU aims for a comprehensive FTA that includes ambitious market access commitments, swift and effective sanitary and phyto-sanitary procedures, as well as the protection of intellectual property rights, including Geographical Indications

Position of the European Parliament

On 8 June 2016, the Parliament adopted a resolution in which it welcomed the agreement of December 2015 to open talks on an FTA with the Philippines. While the Parliament stressed the need for high standards on human rights, labour and the environment, it underlined that such an FTA should act as a building block towards a bi-regional EU-ASEAN agreement.

Following the 2016 presidential elections, Parliament had expressed deep concern regarding the excessively high number of people killed in anti-crime and anti-drug operations. Parliament's resolution of 19 April 2018 on the Philippines had called on the Commission to, should there be a lack of concrete improvements related to the cessation of extrajudicial killings, initiate the procedural steps which could result in the temporary withdrawal of the GSP+ preferences. In its resolution of 17 September 2020 on the situation in the Philippines, Parliament, given the seriousness of the human rights violations, again called on the Commission to immediately initiate the procedural steps which could result in the temporary withdrawal of the GSP+ preferences, should there be a lack of 'any substantial improvement and willingness to cooperate on the part of the Philippine authorities'.

In its Press Release of 31 July 2023, the Commission stressed that 'the Philippines currently enjoy trade preferences under the EU's Generalised Scheme of Preferences + (GSP+), a special incentive arrangement for sustainable development and good governance which grants duty-free access to the EU market for two-thirds of tariff lines. This enhanced access is conditional on the Philippines implementing a range of international conventions covering issues such as human and labour rights, good governance, and environmental protection. The EU will continue to monitor the Philippines' compliance with its international obligations in these areas and pursue its ongoing dialogue to encourage further improvement.'

On a visit to the Philippines on 31 June 2023, Commission President von der Leyen and President Ferdinand Marcos announced their intention to relaunch negotiations on the EU Philippines FTA. The negotiations will be resumed once an exploratory study to assess the parties’ degree of alignment and member state consultations are completed.

On 18 March 2024, the EU and the Philippines officially announced the resumption of negotiations for an ambitious, modern and balanced free trade agreement (FTA) – with sustainability at its core.

The first round of negotiations took place from 14 to 18 October 2024 in Brussels. The topics that were covered during the 1st round of negotiations include Transparency, Sustainable Food Systems, Trade Remedies, Services, Competition and subsidies, Customs and Trade Facilitation, an Anti-Fraud clause, Trade in Goods, Digital Trade, Intellectual Property Rights, Geographical 
Indications, Rules of Origin, Small and Medium-Sized Enterprises, Good Regulatory Practices; State Enterprises, Sanitary and Phyto-Sanitary measures, Trade and Sustainable Development, Mutual Administrative Assistance, Dispute Settlement and Exceptions.

The 2nd round of negotiations is scheduled to take place in the Philippines in 
February 2025.


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 Further reading:

Author: Ulrich Jochheim, Members' Research Service, legislative-train@europarl.europa.eu

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As of 15/12/2024.