Economy of the Philippines – Economic relations with the EU
- The EU is one of the Philippines’ main economic partners, both in terms of trade, investment and development cooperation. Exports to EU countries account for about 20% of Philippine exports (value fluctuates around €5.5 billion). Approximately 18% of exports benefit from GSP+ preferences and a further 70% are granted duty-free treatment through the Most Favoured Nation (MFN) clause. About 8% of Philippine exports are products from EU countries (value of about €3.5 billion).
- Exports to the EU are dominated by electronic products.
- Electronic goods also accounted for the majority of imports from EU countries, as well as medical and pharmaceutical products, industrial machinery and transport equipment. There are many aid projects in the Philippines with EU funds.
- Close cooperation between the EU and the Philippines has been strengthened with the conclusion of the Partnership and Cooperation Agreement, which was signed in 2012. The agreement has not yet entered into force, the ratification process is ongoing. The Philippines is a beneficiary of trade preferences granted by the EU under the Generalised System of Preferences (GSP+) and in December 2014, the country gained additional privileges from the EU side under the GSP+ scheme, a special incentive arrangement to implement mechanisms for sustainable development and good governance.