THE government expects more investments to pour in as the Philippines nears the final stages of negotiations for a free trade agreement with the European Union, the Philippine Economic Zone Authority (PEZA) said on Thursday.
“We are confident that the finalization of the Philippines–EU FTA will open new opportunities, attracting more European investors to expand and establish operations in the Philippines, create more jobs for Filipinos, boost economic growth, and further strengthen our position as a key investment hub,“ PEZA Director General Tereso Panga said in a statement.
On Feb. 17, the Philippine Trade and Investment Center (PTIC)-Brussels facilitated the visit to the PEZA head office in Pasay of a 16-member delegation led by the European Parliament Committee on International Trade (INTA). The body scrutinizes and votes on all EU bilateral and multilateral trade and investment agreements.
Aside from INTA committee chair Bernd Lange, the group included EU Ambassador to the Philippines Massimo Santoro, members of the European Parliament, as well as rapporteurs from Sweden, Romania, Latvia, Spain, Lithuania, and Belgium.
Panga gave a briefing on the Philippines’ investment environment, reform measures, advantages of locating in PEZA ecozones, and PEZA’s role in supporting export-led and industrial growth.
He also outlined priority sectors where European capabilities align closely with Philippine and Asean growth trends for 2026-2030, including electronics manufacturing and supply chain services, logistics and infrastructure digitalization, and renewable energy development focused on grid resilience and energy storage.
The briefing likewise touched on the Philippines’ strengths as an EU partner in Southeast Asia with a growing services sector, a deepening electronics and manufacturing base, and ongoing infrastructure modernization driving medium-term expansion.
Santoro and Lange expressed optimism on the progress of EU-Philippines relations which involves a commitment to advancing a more comprehensive, transparent, and policy-based trade framework.
The delegation cited the EU’s Generalized Scheme of Preferences Plus (GSP+) as a cornerstone of economic engagement, noting that FTA negotiations with the Philippines gauge the “temperature” of its business environment.
Assessing policy stability, regulatory transparency, and competitive fairness are crucial to ensuring a smooth transition toward a comprehensive trade partnership between the EU and the Philippines, INTA said.
The Philippines is the only Southeast Asian nation to be granted the GSP+ with zero tariffs to over 6,200 export products including agri-food, chemicals, and footwear, in support of sustainable development and good governance.
In 2024, some €2.2 billion (about $2.59 billion) in Philippine exports entered the EU under GSP+, achieving a record 80-percent utilization rate.
The EU GSP+ deal, which took effect in 2014, will expire in 2027. The EU and the Philippines recognize the urgency of signing the FTA to avoid trade disruptions and secure long-term market access.
The FTA could bring in $12 billion in additional export potential, Trade Secretary and PEZA Board Chairman Cristina Roque said.
In 2024, total bilateral trade in goods grew by 3.8 percent to €16.8 billion. Philippine exports to EU totaled €9.1 billion, driven by electronic products (€6.3 billion), while EU exports to Philippines reached €7.7 billion, mainly from machinery, transport equipment, and chemicals.
Trade in services were valued at €8.5 billion.
To date, PEZA hosts over 190 locator companies with over P400 billion in cumulative European investments, generating 430,000 jobs for Filipinos nationwide.
Top EU investors in the country by nationality since 1995 include the Netherlands and Germany.
