The Philippine Economic Zone Authority (PEZA) is bullish that more investors from the European Union (EU) will be keen on exploring opportunities in export zones in the country with the revival of the negotiations of the Philippines-EU free trade agreement (FTA).
“With the initiatives of President Ferdinand Marcos Jr. and his economic team in constantly positioning the Philippines in the global investment landscape, we are positive that investors from the EU will look at the country for their investment ventures especially with the presence of an FTA,” PEZA Director General Teresa Panga said in a statement Monday.
According to the PEZA, it has registered a total of 202 projects with equity from EU countries with aggregate investments of about PHP300 billion. These projects generated USD12 billion in exports and over 50,000 direct jobs.
“The FTA would strengthen both the Philippines and the EU’s bilateral trade and economic relations, making an ecosystem fit for our agile investors given that the EU is the Philippines’ fifth largest trade partner,” Panga said.
To pursue investments from the EU, Panga said, the PEZA will conduct investment missions in Europe as a follow-through from the recent visit of President Marcos in Germany and Czech Republic.
During the week when the Philippines and EU jointly announced the resumption of formal FTA discussions after being stalled for seven years, the PEZA was on its first-ever investment mission in Madrid, Spain from March 18 to 23.
The Philippine Investment Forum in Madrid was participated by participants from different Spanish business chamber as well as companies in the sectors of shipbuilding, agro-industrial, pharmaceutical, information technology and business process management, renewable energy, transport, steel and construction, water development, and tourism.
“As one of the investment promotion agencies in the country, this will likewise be instrumental in PEZA’s quest towards positioning the Philippines as the ideal base for offshore operations by EU companies eyeing to penetrate the much vibrant ASEAN (Association of Southeast Asian Nations) and Asia Pacific markets,” the PEZA chief said.
Meanwhile, the next round of Philippines-EU FTA negotiation is being eyed in third quarter of 2024, according to Trade Undersecretary Allan Gepty.
Currently, the Philippines is a beneficiary country for the EU Generalized System of Preferences Plus (GSP+), wherein two-thirds of the country’s exports to EU are treated with zero tariff.
“The EU FTA and the renewed GSP+ status will help the Philippines in its bid to attract EU FDI (foreign direct investments from diverse strategic industries, catering to both domestic and export markets,” Panga said. (PNA)
