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The Philippines and Chile have started negotiations for the Comprehensive Economic Partnership Agreement
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The CEPA is equivalent to a free trade agreement, but with expanded coverage
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President Ferdinand Marcos, Jr said he expects the visit of Chile’s Minister of Foreign Affairs to the Philippines will strengthen ties and cooperation between the two countries
The Philippines and Chile have started negotiations for the Comprehensive Economic Partnership Agreement (CEPA), an arrangement equivalent to a free trade agreement (FTA) but with expanded coverage.
Alberto van Klaveren, Chile’s Minister of Foreign Affairs and Ma. Cristina Roque, Philippine Trade Secretary, on December 6 signed the joint statement officially launching the negotiations in Malacañang.
President Ferdinand Marcos, Jr said he expects Van Klaveren’s visit to the country will strengthen ties and cooperation between the two countries.
“I’ll make certain that everything, the time that you spend here will be as productive as possible and would further the relations between our two countries,” Marcos said in a statement.
“And that is I think the best way forward in this very interconnected world,” the president added.
Roque said the CEPA with Chile will be the Philippines’ first FTA in Latin America.
Beyond trade in goods and services, the Philippines-Chile CEPA will include key areas as intellectual property rights, digital economy, environment, labor and trade, and gender, among others.
Said Roque: “Beyond trade, the CEPA should also be driven by a commitment to sustainability, inclusivity, and economic resilience. By addressing new-generation trade issues, the agreement aligns with the Philippines’ goals of inclusivity and resilience.”
Van Klaveren said: “The Philippines connects ASEAN (Association of Southeast Asian Nations) to the world, while Chile bridges Latin America to the Asia-Pacific. A CEPA could enhance our strategic roles of fostering greater regional integration between ASEAN and Latin America.”
Marcos said there was great potential future tie ups between the two countries with regards to agriculture, specifically cacao cultivation and processing.
“Because it’s becoming a very important crop, we are trying to promote it. And you have I think the best technologies when it comes to that product,” Marcos told Van Klaveren, adding that “there are other investments that we are trying to explore.”
Roque also said fish and minerals exports from Mindanao is an area they seek to explore.
She said there are skin beauty products and other things that can be explored, as well as the agriculture and seafood products sectors.
Roque noted the deep sea port of Chancay that was opened recently in Peru for the benefit of Asian products going to South America.
Van Klaveren said in terms of trade, tariff reductions under the CEPA could diversify the Philippines’ exports basket and boost key industries such as forestry, chemicals, agribusiness and textiles.
He also said the CEPA could address non-tariff barriers, cut transaction costs, and enhance global value chain integration.
Bilateral trade between the Philippines and Chile totalled $141.24 million last year.
Trade undersecretary Allan Gepty said the first round of negotiations for the FTA could begin in the third or last week of March, next year.
The entire CEPA negotiations could be completed by 2026, he added.
The Philippines and Chile established diplomatic relations on July 4, 1946. Last year, Chile was the Philippines’ 49th largest trading partner (out of 230), 47th export market (out of 205), and 50th import supplier (out of 221).
