After announcing the resumption of negotiations earlier this year, the EU & the Philippines are holding their first round of negotiations since 2017 in the week of 14 October. Aside from the clear strategic benefits that such an agreement would bring to the EU, it will support EU exporters’ diversification strategy & increase focus towards ASEAN - to complement existing well-established markets.
The Philippines is the EU's 5th most important trading partner in the region and the 8th biggest export market for EU spirits in 2023. The potential for EU spirits is evident: aside from its economic importance in the region, the Philippines has traditionally been an in-demand destination for world travellers, regularly featuring in the world’s top international tourist destinations.
Despite the potential that exists, a combination of tariffs (10-15% when most of our competitors already benefit from tariff-free access), regular excise tax increases, cumbersome regulatory requirements and the prevalence of illicit trade have prevented EU spirits producers from tapping this potential.
The resumption of FTA negotiations with the Philippines offers a good opportunity to address many of these challenges & to start a dialogue on regulatory changes in the alcoholic beverages sector with the Philippines. We welcome the joint EU-Philippines announcement, which paves the way for the realisation of one of the key priorities of our EU-ASEAN strategy.
