The Market Monitor Minding the Nation's Business
The positive impact of the Philippines’ free trade agreement (FTA) with the European Free Trade Association (EFTA) is evident in the steadily increasing bilateral figures on total trade, exports, and imports with Norway.
In a networking luncheon hosted by the Philippines Norway Business Council (PNBC) on 30 March 2022, Bureau of International Trade Relations (BITR) Director Angelo Salvador M. Benedictos highlighted the steadily increasing trade figures between the Philippines and Norway, brought about by the Philippines-EFTA Free Trade Agreement implemented since June 2018. In particular, the total trade between the Philippines and Norway recorded a growth rate of 19.53% and 120.90% in 2020 and 2021, respectively, despite the COVID-19 pandemic. Philippine exports to Norway likewise posted a significant increase of 36.46% growth rate from EUR 5.7 million in 2020 to EUR 7.8 million in 2021; while Philippine imports from Norway grew by 135.68%, a major increase from EUR 32.7 million in 2020 to EUR 77.08 million last year. The Philippines foresees
that these trade figures will continue to increase given the PH-EFTA FTA in place along with the promotion and cooperation activities to support the Agreement.
Director Benedictos further showcased the top Philippine products exported to Norway that used the FTA rates in 2020, such as food and beverage products (e.g., cooked pasta, crisp savory food products, biscuit, food preparations, soups and broths, peanut butter, mineral or aerated water), prepared/preserved fruits, sugar confectionery products, and garments & apparel. Norwegian exporters likewise benefited from the tariff reduction under the PH-EFTA. Such products include chemicals/fertilizers, fisheries and fishery products, plastics, and related articles. Director Benedictos noted that these increasing trade exchanges further demonstrated the complementarities rather than competition between Norway and Philippines.
Director Benedictos also encouraged Norwegian businesses to look into investment opportunities in the Philippines, particularly in the manufacturing sector, following the amendments of three DTI advocated economic reforms namely the Foreign Investments Act (FIA), the Retail Trade Liberalization Act (RTLA), and the Public Service Act (PSA).
For more information about the Philippine free trade agreement with the European Free Trade Association, please check these useful briefers from DTI and EFTA and video series.