Manila Standard - 13 May 2025
EU eyes enhanced free trade with PH
By Othel V. Campos
The European Union wants a more modern and comprehensive free trade agreement (FTA) with the Philippines that includes a dedicated chapter on digital trade, EU Ambassador Massimo Santoro said Tuesday at a forum hosted by the Makati Business Club (MBC).
Speaking at the Foreign Leaders Series, Santoro said the proposed FTA is being designed to reflect evolving global economic trends and go beyond the structure of the EU’s previous trade deals in the region.
“Maybe it will become, as a consequence, that the very specific content of this FTA will still reflect the structure and modalities of those [past agreements, but will be a bit more updated… We think it’s important to have a digital trade chapter for the case of the new Philippines FTA,” he said.
The inclusion of digital trade is seen as a recognition of the Philippines’ rapidly growing e-commerce sector, which contributed P302 billion, or nearly 5 billion euros, to the economy in 2024.
Santoro said the EU is exploring ways to promote free and secure data flows while mitigating digital risks through legal frameworks like the EU’s Digital Services Act.
He also pointed to strong opportunities for Philippine companies to take part in sustainability projects under the EU’s €300-billion Global Gateway strategy, an initiative that seeks to mobilize both public and private investment into green infrastructure and energy transition programs worldwide.
“There is ample room for the private sector, not only ample room, but a necessity, for it to become part of this,” said Santoro.
He cited institutions such as the European Investment Bank and the EU Sustainable Development Fund as key enablers of private-sector participation by de-risking investments.
He said an initial 60-million-euro EU grant for green economy initiatives was scaled up to 480 million euros when EU member states joined in co-financing efforts.
Both sides are expected to finalize provisions that could open new doors for Philippine exporters, particularly in the digital and sustainable development sectors.