THE Philippines’ proposed free trade agreement (FTA) with the European Union (EU) could help the country catch up with its ASEAN neighbors in attracting EU investmentTHE Philippines’ proposed free trade agreement (FTA) with the European Union (EU) could help the country catch up with its ASEAN neighbors in attracting EU investment

EU FTA expected to help PHL close investment gap with regional peers

2026/04/28 20:47
2 min read
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THE Philippines’ proposed free trade agreement (FTA) with the European Union (EU) could help the country catch up with its ASEAN neighbors in attracting EU investment, an EU trade official said.

“When European investors come to this region, they start with Singapore, because it’s the easiest country to start with, but obviously, there are plenty of opportunities here,” Justyna Lasik, head of economic and trade section at the Delegation of the European Union in the Philippines, told reporters on the sidelines of an event on Tuesday.

“If you were to look at Indonesia, Singapore, and Malaysia, EU investments in the Philippines are less,” she said, noting that the EU investments in the Philippines are also lagging those of Japan, China, and the US.

Ms. Lasik said the looming FTA with the EU will attract European investors in semiconductors and electronics, data centers, and agriculture.

“The more trade rises, the more investment is needed to also develop sectors, like agriculture and semiconductors,” she said.

She added that EU firms specializing in renewable energy would benefit the Philippines — a net importer of oil — as it grapples with fuel price and supply shocks due to the Iran war.

To attract more European investors, Ms. Lasik cited the need to address red tape and align local regulations with international standards.

Foreign direct investment net inflows dropped 39.2% to a four-month low of $443 million in January, the Bangko Sentral ng Pilipinas reported.

The Philippines and EU will conduct their sixth round of trade talks in Manila on May 18-22.

The EU has said it seeks to wrap up FTA talks with the Philippines before its eligibility for the Generalized Scheme of Preferences Plus program expires in 2027. The scheme allows up to 7,000 Philippine-made goods to enter the EU tariff-free until 2027.

Trade Secretary Ma. Cristina A. Roque has said that negotiations for the Philippine-EU FTA could finish by June or July, with its signing scheduled for next year. — Beatriz Marie D. Cruz

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