go through Justin Ireland D. Table, reporter
European businesses still existfiThe EU Southeast Asian National Commerce Commission (EU-ABC) said that the issue of building operations in the Philippines is due to recent reforms and negotiations in the Free Trade Agreement (FTA).
Chris Humphrey, executive director of the EU ABC, told BusinessWorld.
He added: “They still have confidence because we do have FTA negotiations with the EU.”
He said the Marcos government’s reform agenda will help improve the ease of doing business, which is an ongoing focus on European businesses operating in Southeast Asia.
“I think there is always room for any economy in Southeast Asia to improve the ease of doing business. The same is true in the Philippines,” he said.
“But the reform agenda that the Marcos government has been working on makes life easier for European businesses,” he added.
He said the revised Investor Lease Act and reforms have promoted a green economy, and green energy has made the country a more attractive destination.
He also said that the FTA, which both sides hope to complete by the end of next year, is expected to solve some obstacles to entry for European companies.
He added: “If you look at their FTA more broadly between Europe and Vietnam, we’re seeing accelerated trade and we’re seeing accelerated investments from Europe to Vietnam.”
As FTA negotiations proceed, he said there is enough room for expansion in Philippine and EU trade.
“The Philippines is already enjoying a broad preference plan plus (GSP+) and you will lose that at some point due to your own economic development. So you need the FTA to help promote the development of trade,” he said.
He added: “In fact, I do think that trade and investment between Europe and the Philippines should be lower than where it should be. Putting a comprehensive FTA in place will mean future trade will rise in the future.”
When asked which departments the European business is interested in the Philippines, he said they will be biased towards the high-end sector.
“It’s a wide range of sectors like semiconductors, maybe the automotive sector, it’s also high-end electronics, but it’s also agriculture,” he said. “I think there’s a lot of scope for the EU to source more agricultural products from the Philippines.”
He also said the Philippines could see the EU as an alternative market in the U.S. plan to impose tariffs on chips.
“If the United States starts pricing because its tariffs are too high, then businesses and countries will seek export markets for other products. And I think it’s right for the Philippines. This is true anywhere in Southeast Asia,” he said.
He added: “If you’re looking at something like semiconductors, then there’s a huge demand for them in Europe. Production in the Philippines is naturally another market.”
