Report from the 1st round of negotiations
for a Free Trade Agreement between the European Union and the Philippines
23-27 May 2016, Brussels
The negotiations for a free trade agreement between the EU and the Philippines were officially launched at
political level on 22 December 2015. The first negotiating round took place in Brussels from 23 to 27 May
2016. The EU negotiating team was led by Mr Peter Berz, the EU chief negotiator, while the Philippine team
was led by Ms Anna Maria Robeniol, Assistant Secretary for Trade in the Philippine Department of Trade and
Industry, and Co-Chair Ms Laura Q. Del Rosario, Undersecretary for International Economic Relations in the
Philippine Department of Foreign Affairs.
The round took place in a good atmosphere and with the main objective to get clarity on respective
approaches, ambitions and expectations in the different negotiating areas.
The round included meetings dedicated to trade in goods, rules of origin, sanitary and phytosanitary (SPS)
measures, services and investment, intellectual property rights (including geographical indications),
competition, trade and sustainable development and dispute settlement. Negotiating groups on technical
barriers to trade (TBT), customs and trade facilitation and government procurement did not convene during
this round.
In all negotiating groups, the EU stressed the need for consistency and coherence with what the EU has
already negotiated in its bilateral free trade agreements (FTAs) with other members of ASEAN, in view of the
long-term objective to conclude an EU-ASEAN region-to-region FTA. This being said, the negotiations need also
to take into account the specificities of the EU-Philippines relations.
Overall, the round showed a positive outlook and helped prepare the ground to achieve good progress during
the next round, ahead of which the Parties might exchange formal text proposals in some negotiating areas.
Details per negotiating area
Trade in goods: The group on trade in goods discussed key concepts and provisions to consider and compared
the Partners' respective approaches as reflected in the EU-Vietnam and Philippines-EFTA FTAs, the latter being
the most recent FTA concluded by the Philippines. The Parties also discussed their respective tariff regimes
and technical issues related to the exchange of trade and tariff data, as well as technical parameters related
to the preparation of future tariff offers.
Rules of origin: The group discussed key provisions to be included in the FTA. To facilitate the discussions, the
EU side made reference to the EU-Vietnam and EU-Singapore FTAs and the rules of origin provisions under the
EU GSP scheme, while the Philippine side referred to the Philippines-EFTA FTA. The Parties also exchanged
initial information on product specific rules. The EU side presented the registered exporters' system (REX) that
the Philippines will start applying by the end of 2019 in the context of GSP+.
Sanitary and phytosanitary measures (SPS): The group had a fruitful and transparent exchange of views on
possible elements to be included in an SPS chapter. The EU side stressed the importance of negotiating an
Report from the 1st round of negotiations for a FTA between the EU and the Philippines
ambitious text with WTO+ elements The EU also presented its approach based on the most recent
negotiations (Vietnam, Singapore and Japan). The Parties agreed to prepare presentations on their respective
SPS systems to facilitate discussions during the next rounds.
Services and investment: The Parties held an introductory discussion on the expectations for a future FTA title
on services, investment and e-commerce. The EU side presented its approach based on the recent practice
(including EU-Vietnam FTA and the proposal for TTIP), highlighting the importance of preserving a coherent
approach in bilateral FTAs with ASEAN Member States, while also taking into account some of the new policy
developments (investment protection, investment dispute resolution, delivery services and e-commerce).
Dedicated sessions took place on cross-border trade in services, investment liberalisation, mode 4, regulatory
framework, e-commerce, investment protection and investment dispute settlement, as well as on several
services sectors, including delivery, financial, maritime and telecom services.
Intellectual property rights: Talks were mainly exploratory, and allowed both sides to present their respective
approaches on the protection and enforcement of intellectual property rights, including on geographical
indications, and explore possibilities to find common ground. Overall good progress was made towards
understanding the Parties' respective objectives.
Competition: The Parties had an open discussion that allowed the EU to present, on the basis of the EUVietnam FTA text, its approach in relation to disciplines in the area of competition, including on subsidies and
state-owned enterprises.
Trade and sustainable development: The Parties held constructive discussions that reconfirmed a common
commitment towards sustainable development, notably in the context of the 2030 Agenda for Sustainable
Development. The Parties shared experiences and information on domestic strategies, legal frameworks, and
initiatives in this area, allowing for a better understanding of each side's practices and priorities. The EU side
presented its approach to an ambitious chapter, including in relation to key international instruments (ILO
Decent Work Agenda, core labour standards and Conventions; Multilateral Environmental Agreements), high
levels of labour and environmental protection in domestic laws, the sustainable management of natural
resources (forestry, fisheries, biodiversity and wildlife), the promotion of CSR practices and fair and ethical
trade schemes, and a dedicated overseeing mechanism with the participation of civil society.
Dispute settlement: The group exchanged views on each other’s approach to bilateral dispute settlement. The
EU side presented its general approach to dispute settlement (including in relation to rules of procedure, code
of conduct and mediation) using as an example the EU-Vietnam FTA text.
Energy and raw materials: Without a negotiating group having been set up, the EU side presented its ambition
to include in the FTA provisions on trade and investment in energy and raw materials. The EU will share with
the Philippines additional information on the core of the EU's energy and raw materials approach to prepare
discussions on that subject in upcoming rounds.
More information about the trade relation between the EU and the Philippines
03/06/2016
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