EU-Philippines Free Trade Agreement: German companies call for resuming the negotiations

MANILA, Philippines – German companies call for the resumption of the negotiations for a Free Trade Agreement between the Philippines and the European Union (EUPHFTA). This is the result of a survey that was conducted by the German-Philippine Chamber of Industry and Commerce (GPCCI) and Singaporean-German Chamber of Industry and Commerce (SGC) from 11 May to 24 May 2020 amongst German companies active and non-active in the Philippines.

According to the survey, the resumption of the EUPHFTA is of high importance to 83% of German companies. 45% of German companies would expand their current investments, while more than 50 German companies participating in the survey would consider a first-time investment if the EUPHFTA liberalizes the current investment regime in the Philippines.

“The results show the huge potential for the Philippine-German and more general for the Philippine-European economic relations”, says GPCCI President Tristan Arwen Loveres. “We encourage that the next negotiation round should be scheduled this year.”

GPCCI’s Executive Director, Dr. Martin Henkelmann, added: “All countries and regions look for measures to stimulate the economy after the COVID-19 pandemic in the coming years. A Philippine-EU Free Trade Agreement linking these two important economic players together would have a strong impulse.”

The survey received a high response rate of 210 which displays the importance of the topic and interest among the German companies in the resumption of the bilateral negotiations.

Bilateral negotiations for a Free Trade Agreement (FTA) between the Philippines and the European Union were launched in December 2015. To date, only two rounds of negotiations were held in May 2016 and February 2017. Germany is the largest trading partner of the Philippines in the European Union and its 11th largest global trading partner with a total trade volume of EUD 6.3 bn, with EUD 2.8 bn coming from Germany, and EUD 3.5 bn being exported to Germany.

For more information and details on the survey, please see the attached evaluation HERE