MANILA, Philippines — The European Union (EU) expects higher investment flows to the Philippines from the bloc once a free trade agreement (FTA) is in place.
Justyna Lasik, head of economic and trade section of the EU Delegation to the Philippines told reporters on the sidelines of the launch of the Geographical Indications (GI) logo, that investments from EU firms to the country are small compared to other Southeast Asian countries.
A GI is a sign used on products to indicate that it is from a specific region.
“We are quite a big investor in the Philippines, but there is still scope for improvement because compared to other ASEAN countries, EU investments are much lower (here),” she said.
She said the EU is hopeful that the FTA being negotiated with the Philippines would help drive more investments to the country.
“We see the FTA as a tool to promote investments as well and also to attract European investors who might not be that familiar (with the Philippines),” Lasik added.
While European investors entering the ASEAN usually start with Singapore, she said that the EU sees many opportunities in the country.
She said EU firms could help develop renewable energy in the country given the bloc’s expertise in solar and wind energy.
EU firms can also help local agriculture through technological developments in the bloc.
According to Lasik, the EU also sees investment opportunities in semiconductors and electronics.
At present, the Philippines is a beneficiary of the EU Generalized Scheme of Preferences Plus (GSP+), which allows the duty-free entry of 6,274 products to the bloc.
The GSP+ has helped increase trade between the Philippines and the EU.
“This is increasing trade, but also potential investment because the more trade raises, the more investment is needed to also develop other sectors,” Lasik said.
Through the FTA, the EU wants to promote the Philippines as an investment destination to European firms.
“The government is making many legislative changes to encourage investments. So this has to be just maybe advertised more broadly. So this is what we are trying to achieve,” she said.
Lasik said that GIs are part of the FTA negotiations between the Philippines and EU.
Lasik said GIs do not just provide monetary benefits, but also promote product quality and consumer protection.
The launch of the GI logo is expected to help strengthen the Philippines’ GI system.
Intellectual Property Office of the Philippines Bureau of Trademarks director Jesus Antonio Ros said that there are currently four registered GIs in the country.
Ros also said that the IPOPHL has identified around 30 potential GIs including kapeng barako, Bicol pili and Bonuan or Dagupan bangus.
