Makati City: The second round of negotiations for a free trade agreement (FTA) between the European Union (EU) and the Philippines is scheduled to occur in the city next month. This announcement was made by EU Ambassador to the Philippines Massimo Santoro during the 9th Joint Economic Briefing held in Makati City.

According to Philippines News Agency, Santoro expressed optimism about the forthcoming discussions, highlighting the “very positive momentum” established since the relaunch of the EU-PH FTA talks in Brussels in October 2024. He emphasized the importance of maintaining this momentum to achieve the desired outcomes for both parties involved.

Santoro noted that the current level of bilateral exchanges does not meet the mutual ambitions of the Philippines and the EU. Despite the EU being the Philippines’ fourth largest economic partner, the Philippines ranks sixth in Southeast Asia in terms of bilateral trade with the EU.

The ambassador stated that there is significant potential for improvement, considering the size of the Philippine market and its resources. He outlined the objective of the FTA as enhancing bilateral economic ties to a new level, which would not only increase trade in goods but also services and investments, thereby stimulating the country’s economic growth.

Santoro remarked on the attractiveness of the Philippines’ economic landscape for foreign investors, with the country’s GDP continuing to grow despite global market uncertainties. The World Bank projects the Philippines’ GDP to expand by 6.1 percent this year, driven by domestic consumption and investments.

Key factors supporting economic expansion include easing inflation, lower interest rates, and the liberalization of certain industries. Santoro mentioned that European interest in the Philippines, from a trade and investment perspective, would continue to focus on the geopolitical situation, business environment, and investment conditions. The ambassador emphasized the importance of government regulatory initiatives and their implementation in shaping the experiences of European businesses operating in the Philippines.

The resumption of FTA negotiations between the Philippines and the EU was announced on March 18 last year, following a seven-year hiatus.