New Delhi

Following a seven-year hiatus, the European Union (EU) and the Philippines have announced the revival of their free trade negotiations, signalling a renewed effort to bolster economic ties between the two regions.

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According to Bloomberg, the announcement, made by Manila’s Department of Trade and Industry, comes as both parties express optimism about the prospects of deepening their trade relations.

The resumption of talks marks a significant development following a pause in negotiations in 2017, coinciding with concerns raised by the EU regarding human rights issues during the presidency of Rodrigo Duterte.

European Commission Executive Vice President and Trade Commissioner, Valdis Dombrovskis, emphasised the opportune moment for advancing trade relations.

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 "The conditions are right to take our trade relations to the next level," Bloomberg quoted him as saying.

Dombrovskis further highlighted the importance of addressing long-standing concerns related to human rights and labour rights, indicating a multifaceted approach towards fostering a comprehensive trade agreement.

Despite the previous hiatus, both sides appear committed to exploring avenues for mutual cooperation and economic growth.

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The trade talks, which commenced in 2015 before being halted in 2017, are poised to reignite momentum in bilateral trade between the EU and the Philippines.

In 2023, the EU emerged as the Philippines' fifth-largest trading partner, with total trade valued at $16.16 billion, according to data from Manila’s trade department.

The impending trade deal aims to facilitate mutual market access, fostering a conducive environment for diversifying supply chains and expanding opportunities for professionals and service providers in both regions.

With the goal of achieving an ambitious, balanced, and comprehensive Free Trade Agreement (FTA), Philippine Trade Secretary Alfredo Pascual expressed optimism about the prospects of closer economic integration with the EU.

The envisioned free trade agreement holds the potential to unlock new avenues for economic growth and development for both the EU and the Philippines.

As negotiations resume, stakeholders anticipate fruitful discussions aimed at addressing trade barriers and enhancing cooperation in various sectors.

The revival of talks is indicative of a mutual commitment to harnessing the benefits of free trade while addressing pertinent issues such as human rights and labour standards.

(With inputs from Bloomberg)