Forging Ahead, a Renewed Phase in EU-Philippine Relations

On July 31st, 2023 the EU launched the Team Europe Initiative on Green Economy in the Philippines. The Team Europe Initiative will contribute €466 million to promote a circular economy, renewable energy, and energy efficiency within the Philippines through collaborations between various stakeholders, including local governments, industry, NGOs, and consumers. Notably, this initiative denotes a resurgence and advancement in EU-Philippines relations, especially in comparison to the period when former Philipino President Duterte was in office.

The Team Europe Initiative on Green Economy in the Philippines focuses on plastic waste management, aiming to establish a more sustainable approach that will reduce both plastic waste and marine litter. This project entails a partnership among the European Commission, France, Spain, Germany, and Finland. Austria, Netherlands, and Sweden will collaboratively contribute technical support and funding to this endeavor within the Philippines. Out of the €466 million funding, the EU will provide €64 million (€60 million from the Green Economy programme and €4 million from EFSD+ Blending), while the EU member states will supply the remainder. Furthermore, the initiative will allocate funds for the development of new sanitary landfills and alternative waste management strategies.

On the same day that President of the European Commission, Ursula von der Leyen, and President Ferdinand Marcos launched the initiative, the EU and the Philippines announced their intention to relaunch negotiations for a more balanced and expansive free trade agreement. While this relaunch would be purely exploratory in nature, it reflects the EU’s intention to re-engage with the country and Southeast Asia. The EU already enjoys a strong economic relationship with the Philippines, ranking the Philippines as the EU’s fourth-largest trade partner. In 2022 alone, trade for both services and goods amounted to over €23.1 billion. If a free trade agreement could be reached, it would further build upon the Philippines' already favorable trade position under the EU's Generalised Scheme of Preferences + (GSP+), a special incentive arrangement for countries that achieve sustainable development goals.?

While it may be too soon to say whether or not the EU and Philippines will be successful in their efforts to create a free trade agreement, the actions taken by both parties reflect a willingness to take action and carve a new path. B2EU will continue to monitor these developments and analyze the potential economic benefits this new relationship could have.