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Members of the European Chamber of Commerce of the Philippines (ECCP) are optimistic about the prospects of their trade and investments in the Philippines, findings of the ECCP Business Sentiment Survey done in November showed.

The survey said 85 percent of the respondents expect their level of trade and investment in the Philippines to increase over the next four years while 81 percent expect their company to expand in the next four years.

This optimism is fueled by the growing importance of the Philippine market’s global revenue to the operations of these companies in the last two years, as indicated by 64 percent of respondents.

Asked what key factors drive their interest in expanding to/in the Philippines, the respondents identified the following as highly significant: economic recovery and growth opportunities, 69 percent; adequate laws and regulations for foreign investments, 54 percent and; diversification of customer base, 50 percent.

The respondents also identified the following as outlook concerns: policy continuity and predictability; geopolitical risks and uncertainty; transparency and streamlining of regulations and policies; digital transformation; inflationary/rising prices and; climate-related disasters.

Three-quarters of the respondents said there are still significant amounts of barriers to investment, business activities, or overall ease of doing business in the country. More than half, 53 percent, see ease of doing business measures in the Philippines as improving.

Only 6 percent of respondents of companies involved in trade in goods see customs procedures as speedy and efficient.

An overwhelming majority, 85 percent, sees the resumption of the European Union (EU)-Philippines free trade agreement (FTA) negotiations as fairly important to very important for them and their business strategies.  When asked how they will utilize the EU-Philippine FTA, 24 percent of respondents said for trade in goods and services;21 percent for trade in services and; 20 percent for trade in goods.

Around 24 percent of respondents sees customs and trade facilitation as the most relevant chapter of an FTA, followed by investments, 16 percent and trade in services, 10 percent.

Meanwhile, the Department of Finance (DOF) said in a statement on Thursday the Philippines and EU convened the fourth meeting of the Sub-Committee on Development Cooperation in Manila on November 25, where they have reaffirmed their shared interests and values under the EU-Philippines Partnership and Cooperation Agreement. 

Both parties identified green economy, digital transformation, peace and good governance as key priority areas for cooperation and fully significant for the period 2025-2027.

According to the DOF, possible new investments in the green economy were mentioned as a priority area for prospective loan financing with EU grants and guarantees. 

“To this end, the role of the European Investment Bank (EIB) and other European Development Finance Institutions will be crucial, as well as the potential cooperation with multilateral banks, such as the Asian Development Bank,” the DOF said.

The meeting also covered possible future cooperation on sustainable use of critical raw materials and green finance. 

The Sub-Committee likewise recognized the relevance of regional cooperation, in particular in the framework of the EU-Asean Sustainable Connectivity Package, including support to seafarers’ action, and Team Europe Initiative programs. On the sidelines of the event, the Philippines and EU likewise held discussions on a proposed partnership between the Philippine Government and its European development partners such as the Agence Francaise de Développement, KfW Development Bank and EIB, through co-financing or parallel financing of green, energy and connectivity initiatives under the Team Europe initiative.