00:00So today they announced a substantial conclusion.
00:02That means there's a few T's to cross and a few Y's to dot.
00:06And it needs to go through signing and then ratification.
00:09But when it's implemented, and I hope that will be fairly swift, probably by this time next year,
00:15you should see a big uptick in trade between the Philippines and the EU.
00:20Both for large companies and smaller medium-sized businesses as well.
00:23It'll open up markets on both sides.
00:26It will reduce tariffs on both sides.
00:29It will hopefully lead to more harmonized standards.
00:32It will ease Filipino businesses in trading with the EU.
00:36And that's important.
00:37And we should see a big uptick in trade.
00:40And that will be a benefit to citizens of both the EU and the Philippines as well.
00:44Aside from this, you also mentioned in your statement earlier that in your latest business sentiment survey,
00:5043% of European businesses plan to expand here in the Philippines in the next five years.
00:56Do you think that once the FDA is approved, do you think that will fast-track trade between the two
01:02countries,
01:02especially for the European business system?
01:03I think it will fast-track trade and it will fast-track more investment from the EU into the Philippines
01:07as well.
01:08My reference point is what happened when the EU completed its FDA with Vietnam.
01:13We saw trade really accelerate away, particularly on the Vietnamese side of life.
01:18And we saw a huge uptick in European investment in Vietnam.
01:21I would expect the Philippines to follow a similar path.
01:25So when it comes to ensured implementation, because a lot of our businesses here in the Philippines,
01:33I remember we were flagged by the US for, I think it was labor when it comes to, that's where
01:39we were, tariffs increased.
01:41And I know that the EU also has these kinds of, what they call this, these kinds of safety nets
01:46to ensure that businesses are actually ethical and safe.
01:49How do you think Filipino businesses can adapt to these kinds of standards that the EU has?
01:53Well, the standard approach of the EU is to require their partners to make sure they're signing up
01:57to international labor organization protocols.
02:00If the Philippines isn't already signed up, they will be asked to sign up.
02:03That naturally helps protect workers and it helps to make sure you remain competitive as well.
02:09And it will keep your access free into the EU.
02:13So it's beholden on both sides to make sure that they're abiding by the rules set out in the FDA.
02:17And as long as they are, that market access, that freer flow of goods, that freer flow of services will
02:23remain.
02:24And if you remember, of course, it's not just goods from the Philippines, the EU.
02:28It's your service industry or service sector as well, which is extremely strong and one that can take big advantage.
02:35To also ensure that once we, of course, approve this, how can we ensure the swift implementation of this deal?
02:43What do you think the steps that the Philippine government can take to ensure that, you know, can pass track
02:48this approval?
02:48So from where we are today, we've just got to finish the last couple of steps.
02:52It's going to go through legal scrubbing and then signed.
02:55That's the easy part.
02:56Then the implementation part.
02:57And that requires the Philippine Congress to approve it.
02:59It requires the European Parliament to approve it.
03:01So I'm not hearing noises on either side that will hold that process up.
03:05That's very important.
03:06Get it ratified as quickly as we can.
03:08And then implementation.
03:09And implementation is actually when the hard work really begins for the governments on both sides because there may be
03:15some rules we need to change.
03:17But again, the Philippines has shown great willingness to move on issues.
03:22I think Alan Hepti, the second charge at DTI, has done an amazing job in negotiating this deal and an
03:28amazing job of bringing along the rest of the administration.
03:31And I don't actually see too many issues in implementation.
03:34So are we optimistic that we can fast track the approval in Congress, in the Philippine Congress?
03:39Yes, we are.
03:40There's a definite timetable in place.
03:42It's got to be done by this time next year.
03:45But I'm confident it will be done.
03:46So sooner.
03:47The sooner, the sooner, the better.
03:49The sooner we can get it ratified, the sooner we can then kick on and start utilizing the FDA.
03:54You mentioned about changes.
03:56Which sector do you think, like the renewable aspect, digital infrastructure, agriculture, and manufacture, stand to gain the most immediate
04:04boost for this deal?
04:06I think all of the above would be my answer to that.
04:08It's certainly renewable energy.
04:10The Philippines is doing a big push on renewable energy.
04:13The changes to the law to allow 100% foreign ownership are a big boost for foreign direct investment into
04:18that sector.
04:19European industry stands ready to support that.
04:21Anything connected with the digital economy is an absolute must, whether it's working on the infrastructure to improve the infrastructure,
04:29internet speeds in the country, whether it's in terms of improving digital skills in the country.
04:34All of those are very attractive propositions.
04:36We have a very tech-savvy workforce here in the Philippines as well.
05:09We have a very tech-savvy workforce here in the Philippines.
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