The Philippines is now set to receive millions of euros worth of economic packages and relaunch its negotiations for a free trade agreement (FTA) with the European Union (EU) as the regional bloc continues to “derisk” its supply chains.
On Monday, President Ferdinand R. Marcos Jr. and European Commission (EC) President Ursula von der Leyen witnessed the ceremonial signing of the Joint Declaration on Green Economy Program following their successful bilateral meeting in Malacañang.
Under the agreement, Marcos said the EU has committed to provide a 60-million-euro grant to the government for its green economy program, which includes promoting a circular economy, renewable energy, and climate change mitigation measures.
On top of the grant, EU will also provide technical support to the country through its “Eyes in the Sky” initiative, wherein the data from its Copernicus satellites will be shared with the Philippine Space Agency through a “mirror site.”
“This is very important for early warning, for example, for extreme weather phenomena and to improve climate resilience. This is the first in-space cooperation in Asia,” Von der Leyen said in her joint statement with the President.
Digital, mining packages
The EC official said they will also launch a digital economy package for the Philippines later this year, to provide the country access to fast and reliable internet connectivity and cybersecurity training.
She also disclosed their plans to extend the submarine cable that the EU plans to build via the Arctic to Japan to reach Southeast Asia through the Philippines, which will make it a digital hub in the region.
As part of its efforts to develop new sources of “critical raw materials,” the EU is also currently eyeing projects that aim to develop the local mining industry.
“Our existing partnerships on critical raw materials do not only invest in extraction, but across the whole value chain. We share technology and knowledge. We train the local workforce and we empower local communities and of course, we abide by the highest and environmental standards,” Von der Leyen said.
Relaunched FTA talks
Both Marcos and Von der Leyen also formally announced the relaunching of the negotiations for a Philippine-EU FTA.
“I welcome the conduct this year of scoping exercises between the European Commission and the Philippines towards negotiations for a Philippines-EU free trade agreement,” Marcos said. (See related story, PHL-EU FTA nego resume in ’24 after Sept ’23 scoping talks-DTI)
Von der Leyen said they are ready to work with the government to set the right conditions for the resumption of the negotiations, which was deferred in 2017.
The EU is seeking to accelerate such cooperation with the Philippines to “derisk its trade relations” with other countries such as China and Russia.
“We have all learned the hard way the cost of economic dependencies. We need to diversify our supply lines and make them resilient,” Von der Leyen said.
Other cooperation areas
Marcos also lauded the continued assistance of the EU to the country, which includes the successful Bangsamoro Peace Process and the EC’s decision to extend its recognition of the country’s compliance with the Standards of Training, Certification and Watchkeeping for Seafarers (STCW).
He said the country is open to “strengthening and deepening” its ties with the EU.
For her part, Von der Leyen said the EU continues to recognize the 2016 award of the arbitral tribunal on the South China Sea as legally binding.
The arbitral award invalidated the nine-dash-line claims of China in the West Philippines Sea. Beijing refuses to recognize the ruling.
“We believe in the international rules-based order and we believe in the need to promote and to defend it,” Von der Leyen said.
“We are ready to strengthen the cooperation with the Philippines on maritime security in the region by sharing information, conducting threat assessment and building the capacity of your national CoastWatch center and your Coast Guard,” she added.
She also reiterated the EU’s condemnation of Russia’s “war of aggression” against Ukraine.
Von der Leyen is scheduled to conclude her historic visit to the country—the first done by an EC President—on Tuesday.
Image credits: AP/Aaron Favila, Pool
