Gov’t eyes big wins from new trade deals
The Philippines is pushing for the successful conclusion of ongoing free trade talks with the European Union and Canada, officials said on Thursday.
The Department of Trade and Industry (DTI) said the talks with the EU are set to reach a “critical” stage when officials hold the fifth round in March, said DTI Undersecretary Allan Gepty said.
Members of the European Parliament’s Committee on International Trade are scheduled to arrive in the country on Feb. 16.
Gepty said the country could unlock as much as $12 billion in export potential from the EU and DTI hopes to resolve remaining issues within the year.
“We’re hoping that through these free trade agreements (FTA) that we are negotiating, we can, in a way, fill in the gap or at least address some of the major issues that our [micro, small and medium enterprises] and stakeholders experience when accessing the European market,” Gepty said at a briefing for foreign businessmen on Thursday.
Gepty said the country’s total export potential to Europe was valued at $22 billion, but more than half remains untapped.
Philippine exporters face two main barriers: limited awareness of opportunities and difficulty complying with EU rules and standards, Gepty said.
Under the EU Generalized Scheme of Preferences Plus (GSP+), more than 6,000 Philippine product lines enjoy preferential access to the EU market, including tuna, coconut, coffee and pineapples.
However, Gepty said the GSP+ privileges are set to expire at the end of 2027 and they are also tied to the Philippines’ lower-middle-income status.
Once the country reaches upper-middle-income status for three consecutive years, it risks losing these privileges.
“This gives us reason to quickly conclude the FTA with the EU because we don’t want any disruption in trade,” Gepty said.
Talks with Canada
Next week, the country is also expected to start the first round of negotiations for a free trade pact with Canada, the Department of Foreign Affairs announced on Saturday.
In a text message to the Philippine News Agency, Foreign Affairs Spokesperson Angelica Escalona said the Philippines will host the formal negotiations from Feb. 18 to Feb. 20.
The talks were initiated by President Marcos and Canadian Prime Minister Mark Carney during their bilateral meeting in Kuala Lumpur, Malaysia, in October 2025.
According to the Canadian foreign affairs ministry, Canadian stakeholders have a “high level of support” for the potential Canada-Philippines FTA, seeing its benefits of increased trade.
Before the formal talks, the Canadian government received two submissions from provinces and territories, pushing similar potential for services, energy and resources, and attracting foreign talent and expertise through the FTA.
Canadian export-oriented sectors, such as sugar, beef, grains and pulses, also showed strong support for the possible deal, calling for the removal of tariffs and nontariff trade barriers.
Canadian supply-managed sectors, such as dairy, poultry and eggs, likewise indicated that they are not opposed to negotiations.
Top Canadian exports to the Philippines include mineral ores, meat, cereals, wood, machinery, electronics, fertilizers and aircraft and parts.
The top imports from the Philippines are electronics, machinery, animal and vegetable oils, leather and rubber products, scientific instruments and preparations of vegetables.
