The Philippines and Chile will soon start negotiations for a Comprehensive Economic Partnership Agreement (CEPA), which is set to be the country’s bilateral first free trade agreement (FTA) and investment deal in South America.

Department of Trade and Industry (DTI) Secretary Ma. Cristina Roque and Chile’s Minister of Foreign Affairs Alberto van Klaveren signed Friday in Makati City a joint statement formally launching the CEPA negotiations.

Roque said the Philippines-Chile CEPA would go beyond trade in goods and services as this will include key areas such as intellectual property rights, digital economy, environment, labor, and micro, small, and medium enterprises (MSMEs).

“Beyond trade, the CEPA should also be driven by a commitment to sustainability, inclusivity, and economic resilience. By addressing new-generation trade issues, the agreement aligns with the Philippines’ goals of inclusivity and resilience,” she said.

Meanwhile, Klaveren said Chile considers the Philippines as the world’s gateway to the Association of Southeast Asian Nations, which complements Chile’s position as the world’s bridge to the Latin America.

“The Philippines represents a significant untapped market for Chile in Southeast Asia, underscoring the importance of formalizing this commercial relationship. We want to thank the Philippines for its commitment to this process, reiterate our commitment to moving steadily forward in these trade negotiations, and continue strengthening our ties of friendship,” the Chilean foreign minister added.

In a press conference, DTI Undersecretary Allan Gepty said the two countries would finalize the terms of reference or the scoping paper in January 2025.

“For the first round of negotiations we’re targeting maybe third week or last week of March (2025),” Gepty said, adding that this will be held in Chile.

The country’s top trade negotiator said they target to conclude the talks by 2026.

The formal talks for CEPA between Manila and Santiago align with the Marcos administration’s directive to the DTI to diversify trade and investment partners by forging FTAs and CEPA.

The launch of the CEPA negotiations is a product of the two Joint Economic Commissions (JECs) between the two countries in Manila on Aug. 15, 2023 and in Santiago on Nov. 8, 2024.

According to the DTI, merchandise trade between the two countries last year stood at USD141.24 million, with average growth in the past five years at 9.22 percent.

Philippine exports to Chile in 2023 was only at USD37.84 million, which had an annual decrement of 7.79 percent from USD52.34 million since 2019, while imports from Chile amounted to USD103.41 million last year, or an annual growth of 21.87 percent from USD46.87 million over the past five years. (PNA)