RP-EU partnership deal inked this year?
BusinessWorld | June 07, 2010
RP-EU partnership deal inked this year?
by Jessica Anne D. Hermosa
A FRAMEWORK AGREEMENT that will govern relations between the Philippines and the European Union is likely to be signed in October and could pave the way for a bilateral trade deal, a Cabinet official yesterday said.
The Partnership Cooperation Agreement (PCA) might be inked at the Asia-Europe Meeting later this year after negotiations were finally concluded last week, Trade Secretary Jesli A. Lapus said.
"The seventh PCA negotiating round on June 3 in Brussels [completed the talks]. This is a technical conclusion," Mr. Lapus said in a text message.
The deal will guide the two countries’ dealings in trade and investment, security and human rights, and the rule of law.
Philippine ambassador to Brussels Enrique A. Manalo led the last round of talks, Mr. Lapus said.
"[But] we have not scheduled a signing. A good target event might be the Asia-Europe Meeting (ASEM) in Brussels in October. That is just a target," Mr. Lapus said.
Signing formalities should be completed "within the coming months" as the text will have to be translated into all EU languages first, said Alistair MacDonald, head of the European Commission’s delegation to the Philippines, in an e-mail yesterday.
The EU requires a PCA to be laid down before a trade deal with a partner can be forged.
In line with its plan to forge pacts in Southeast Asia — an initiative first announced in 2007 — the Western bloc has already begun trade talks with Singapore and Vietnam this year.
"The Philippines has not yet made any request to engage bilaterally with the EU on this matter," Mr. MacDonald said.
Mr. Lapus, however, noted: "A free trade agreement negotiation with the EU is desirable and will be a matter of [due] course."
The Philippines will likely approach the EU after the PCA is signed in October although the process "is now in order," he said.
The EU was the Philippines’ largest export market last year, accounting for $7.883 billion or roughly a fifth of its total sales to the world according to central bank data.
The European Chamber of Commerce of the Philippines (ECCP) hailed the development "as a great step forward on the path towards a mutually beneficial free trade agreement."
"And the timetable [of starting talks after October] makes sense as it will take some time for the new government to get ready for the negotiations," ECCP Executive Vice-President Henry J. Schumacher said in a text message.
