Philippine Senate Concurs to Phl-EFTA Free Trade Agreement

From left: DTI Undersecretary Ceferino S. Rodolfo, DTI Secretary Ramon Lopez, Senator Loren Legarda, DFA Undersecretary Manuel A.J. Teehankee, and DFA Assistant Secretary Leo M. Herrera-Lim

06 March 2018 MANILA — The Philippine Senate voted to concur on the ratification of the Philippines-EFTA Free Trade Agreement, the Philippines second bilateral free trade agreement after the Philippines-Japan Economic Partnership Agreement (PJEPA) on 05 March. The European Free Trade Association (EFTA) is composed of the Republic of Iceland, the Principality of Liechtenstein, the Kingdom of Norway, and the Swiss Confederation.

As mentioned by Senate Committee on Foreign Relations Chair, Senator Loren Legarda, in her sponsorship speech, “the PH-EFTA FTA was negotiated only with the promotion of fair economic cooperation in mind—one that will enable a business environment conducive for investments and provide opportunities for producers, consumers, and service suppliers alike.”

The Agreement is seen to boost Philippine exports to EFTA countries, especially of agricultural products, as the Agreement covers 90% of tariff lines for agricultural products. It will also enable the Philippine services sector to bring in Filipino workers to EFTA countries where the service companies have contracts. Investments could also grow, not just bilaterally, but also from third countries that may wish to locate in the Philippines to gain access to the EFTA market.

The Philippines is the second ASEAN country, after Singapore, to conclude a free trade agreement with EFTA. Data from 2009 to 2013 indicate ASEAN exports to EFTA amounted to USD 5.9 Billion, with the Philippines accounting for only 4%. With the Agreement, the Philippines is expected to account for a bigger share of ASEAN exports to the bloc.

The Agreement likewise includes a simplified procedure for exporters, dispensing with the requirement of certification of origin, and in its stead, exporters could avail of the self-declaration system. 

The Agreement will take effect as soon as the Philippines deposits its instrument of ratification in Oslo, Norway. On the EFTA side, Liechtenstein, Norway, and Switzerland have already ratified the Agreement. END