The Philippines eyes to tap the $8.3 billion potential exports to the European Union (EU) under a planned free trade agreement (FTA).
In a consultation conducted by the Department of Trade and Industry, officials said the Philippines will seek improved market access to the United Arab Emirates (UAE) under the planned Comprehensive Economic Partnership Agreement (CEPA). The Philippines has agreed to open up 80 percent of its market to UAE exports of industrial goods.
Allan Gepty, DTI undersecretary, said the Philippines expects EU to bring up emerging issues when they resume negotiations on FTA.
Gepty noted the importance of meeting the 2027 deadline to complete the negotiations and have the FTA come into force by 2028.
Gepty said the Philippines could lose its eligibility to the Generalized System of Preferences (GSP) Plus once it attains middle- income status projected to be in 2025. A country which stays in the middle-income status for three consecutive years automatically graduates from the GSP Plus.
Emerging trends expected to come up in the EU-Philippines FTA talks are on digital trade involving cross-border trade, data protection, consumer protection, source code, customs duties on electronic transmission, regulatory cooperation; government procurement which calls for transparency, non-discrimination, market opening and competition; state-owned enterprises to ensure government does not compete with private sector on certain businesses; trade and sustainability covering labor, gender equality, climate change, biological diversity, responsible business conduct; sanitary and phytosanitary measures where EU would ask for regionalization relative to animal and plant health disease, international standards, equivalence, notification, transparency and energy and raw materials which call for sustainable investment competition, exploration and production, standards and cooperation.
Bianca Sykimte, director of the Export Marketing Bureau, in her presentation said the Philippines may accept UAE’s offer on tariff elimination of 4,621 tariff lines amounting to $519 million. Negotiations on market access are set to be concluded within the year.
However, the Philippines will ask UAE to reconsider accelerated terms for those offered for tariff elimination with longer staging. These involve 1,717 tariff lines valued at $ 29.9 million.
Sykimte said the Philippines will reiterate a request for the inclusion of some tariff lines of interest excluded by UAE in its initial offer. These involve 1,557 tariff lines amounting to $152.4 million.
The Philippines anticipates UAE to seek reconsideration on items earlier excluded by the country as these are of offensive interests. These are mineral oils and fuels, plastics and articles thereof, paper and paper articles and flour and starches and other pastry products and ingredients Sykimte said the Philippines’ initial offer includes mineral oils and fuels accounting for $833.6 million or 78.9 percent of UAE’s total request.
These are plastics and its articles, tanning or dyeing products, iron and steel and articles thereof, copper and copper articles, aluminium and articles thereof, mechanical machinery and appliances, electrical machinery and equipment and its parts, and aircraft and parts thereof On the part of the Philippines, it will have wider access to UAE’s market for essential oils and cosmetic products, plastics and articles thereof, leather goods, garments/clothing articles, footwear, articles of stone and cement and similar materials, pearls and precious metals and stones, machinery and mechanical appliances, electrical machinery and equipment and its parts, aircraft and its parts, furniture and bedding accessories, and toys and parts and accessories.
