Irish agri-food exporters and medical manufacturers are set to gain lucrative new access to one of Asia’s fastest-growing economies following a breakthrough Free Trade Agreement between the EU and the Philippines, the European Commission says.
The EU has reached what it it is calling “substantial” political agreement towards a deal that will eliminate tariffs on 94 percent of trade lines, covering more than 97 percent of bilateral trade.
The breakthrough came following a phone call yesterday between European Commission President Ursula von der Leyen and Philippine President Ferdinand R. Marcos Jr.
Trade negotiations were first launched more than ten years ago but were then stalled. There was a new push for a deal when von der Leyen visited to Manila in 2023.
With a population of 113 million people, the EU believes that the Philippines can offer a major market expansion for exporters.
Bilateral trade between the Philippines and the EU reached €17.6 billion in goods last year.
The most important beneficiaries for the Irish economy could be agri-food, beverage, and pharma sectors.
The EU already runs a large agricultural trade surplus with the Philippines (€2 billion in exports against €1.4 billion in imports).
This agreement would further liberalise key agri-food exports, according to the European Commission, with potential for Irish dairy and meat processors.
Irish spirits may also find new markets as a result of the deal.
Ireland’s important pharmaceutical and medical device manufacturing sectors is expected to benefit from a cut in red tape along side an elimination of tariffs.
Negotiating teams on both sides are expected to spend the coming months finalising technical details, translating numbers into formal legal texts, and preparing the treaty for official signature.
European Commissioner for Trade, Maroš Šefčovič, said the deal would be a “major” new opening for European exporters.