Philippines-European Free Trade Association FTA UNDERSECRETARY NORA K. TERRADO Department of Trade and Industry 26 April 2016 Zurich, Switzerland

Department of Trade and Industry Background – Switzerland broached the idea of an FTA through EFTA in a number of bilateral meetings with PH – PH and EFTA first agreed to sign a Joint Declaration on Cooperation and proceeded with an FTA scoping exercise Ministers from the Member States of the European Free Trade Association (EFTA) – Iceland, Liechtenstein, Norway and Switzerland – and from the Philippines signed a Joint Declaration on Cooperation (JDC) on 23 June in the Westman Islands, Iceland.

Department of Trade and Industry Background – FTA negotiations was launched in March 2015 and was concluded in February 2016 – Parties will sign the FTA on 28 April 2016 in Bern, Switzerland

Department of Trade and Industry Salient Features Both sides provided tariff concessions on almost all traded goods between the Parties First PH FTA with substantial commitments on o trade facilitation, o technical barriers to trade (TBT) o sanitary and phytosanitary (SPS) measures o intellectual property rights (IPR) o trade and sustainable development PH and EFTA agreed on a liberal rules of origin requirements and stricter disciplines on the application of measures that may restrict trade

Department of Trade and Industry Salient Features EFTA States will be the only European countries that have preferential market access in PH EU and US does not have preferential market access in PH EFTA States will benefit from additional services commitments from PH Beyond its commitments in the WTO and in other PH FTAs First FTA wherein PH committed to include disciplines on domestic regulation Ensuring reasonable, objective and impartial administration

Department of Trade and Industry Market Access Gains: Trade in Goods  PH is a growing market for Swiss Products Watches Electronic machineries and parts Pharmaceutical products, chemicals Cheese, chocolates, food preparations, wine  Swiss market to benefit from wider variety of products from ASEAN Tropical agricultural products Electronic parts

Department of Trade and Industry Market Access Gains: Trade in Services EFTA States enjoy a more predictable and stable environment in areas where PH commitments go beyond its existing commitments Rental/leasing services without operators Other business services Construction and related engineering services Distribution services Financial services Entry and temporary stay of service suppliers from EFTA, without undergoing the economic needs test, is also allowed in certain categories EFTA States improved on its commitments under the WTO

Department of Trade and Industry Key Messages Both sides should take advantage of preferential market access FTA ensures that reforms are locked in place Economic objectives are in line with our objectives on sustainable development, including inclusive growth.

THANK YOU Department of Trade and Industry Philippines