The majority of Filipino workers send money to Philippines from European countries, as the work-life balance and paid salaries are higher than other countries around the world. Apart from remittance, under the EU’s standard Generalised Scheme of Favours, the Philippines benefits from trade preferences given by the EU (GSP).
As part of a special incentive scheme for sustainable development and good governance, it was granted additional privileges under GSP+ in December 2014, resulting in zero-rate tariffs for nearly 6200 tariff lines. Following the break-in EU-ASEAN FTA discussions in 2009, both sides agreed to begin preparatory work to explore the prospect of further deepening EU-Philippines commercial relations through a bilateral free-trade agreement.
How Can Government Fast Track Trade Between the Philippines And European Nations To Increase Foreign Reserves?
In terms of free trade agreement (FTA) negotiations, the Philippines is at a crossroads in its economic relations with the European Union. As the globe grapples with the economic effects of the epidemic, the Philippines should use the opportunity to relaunch negotiations and secure a Philippine–EU Free Trade Agreement to aid in the country’s long-term and sustainable economic recovery through money transfers to Philippines to increase foreign reserve.
The European Union is the Philippines’ largest foreign investor and its fourth-largest trading partner. The Philippines’ total commerce with EU member states amounted to over 10% of the Philippines’ overall trade in 2018–19. Under the Generalized Scheme of Preferences Plus (GSP+), the Philippines currently has a significant incentive to trade with the European Union. This preferential agreement allows Philippine exports to enter the European Union duty-free on two-thirds of all EU tariff lines. In exchange, the Philippines must effectively carry out its international responsibilities to sustainable development and good governance. Another way to get an online money transfer to Philippines is through expatriates, a skilled workforce.
What Filipino Governemtn Ned To Consider For Good Relationship For Trade With EU?
To self-identify as a “fair-weather buddy,” the Philippines must seek to depict itself as a steady and dependable partner in both economic and non-economic matters. This includes a thorough reassessment of the current administration’s attitude toward the European Union. Both sides should revise the proposed FTA’s negotiating points to make it more responsive to the post-COVID-19 pandemic world’s demands and keep sending money to Philippines online.
The trade and investment deal will build on the EU’s overall engagement with the Philippines, based on the EU-Philippines Framework Agreement on Partnership and Cooperation, which went into effect in March 2018.