MORE French businesses are looking to invest in the Philippines amid the negotiations for a free trade agreement (FTA) with the European Union (EU) and the launch of direct flights between the Philippines and France, according to the French Chamber of Commerce and Industry in the Philippines (CCI France Philippines).
“I believe that from what we have seen, at least in the last couple of years, there is definitely a growing interest from the French side in investing in the Philippines,” CCI France Philippines President Jacque Christophe Branellec told BusinessWorld on the sidelines of the France-Philippines Business Forum on Friday.
“We have a lot of big conglomerates from France investing in sectors like renewable energy and infrastructure. There have been attempts also in agriculture, and there’s also big interest in terms of defense and energy in general as well,” he added.
He sees a big opportunity in retail, as many French brands and products are already present in the country.
“I think France has a lot to offer to the Philippines and the Philippine market; the consumer market also appreciates the French brand and French products,” he said.
Currently, the Philippines is a beneficiary of the EU Generalized Scheme of Preferences Plus (GSP+), while negotiations are ongoing for the EU-Philippines FTA.
“There is a quite large trade deficit between France and the Philippines. So that’s something that we can also work on by sending more or exporting more Filipino products to France, as well as having French investments and products being imported here,” he added.
Bilateral trade between the Philippines and France is valued at 3 billion euros per annum.
Minister Delegate for Foreign Trade and French Nationals Abroad Laurent Saint-Martin said that there are currently over 150 French companies operating in the Philippines, employing nearly 100,000 people.
“These figures continue to grow year after year, reflecting the expansion of our economic partnership and the increasing interest of French businesses in the Philippine market,” he said.
However, he said trade between the Philippines and France “remains below full potential.”
“The Philippines is only France’s sixth-largest ASEAN trading partner. It is an indicator of untapped opportunities that we must seize together,” he added.
He said that he hopes the recently launched Air France direct flights will help facilitate trade, tourism, and business exchanges.
“It is the only direct flight from Manila to Europe. It is very important to connect people directly to showcase the strengths and what we want to do between our two countries,” he said.
“This new route marks a tangible milestone in our relations… I sincerely hope that this direct link will help increase the Philippines’ … visibility among our business community,” he added.
Pamela Villangka, country manager for Air France, said that the market has grown 25% since the launch of direct flights in December, as more Europeans visit the country and as more Filipinos visit France and other European countries.
“Since the launch in December… we’ve had good take-up, approximately 80-90% seat factor,” she said.
“Admittedly, there’s a lot more for the inbound sector that we need to fill. But generally, we’ve seen quite a good performance since the launch,” she added.
She said that the company currently works with travel agencies and operators to increase inbound tourism from Europe.
Asked why the inbound business is not keeping up with outbound, she said European travelers have more options in Southeast Asia.
“There’s Indonesia, there’s Thailand. So there are other options for not just the French, but the entire European community,” she said.
“But the Philippines is a growing market. I believe the Department of Tourism is working very hard to really introduce the Philippines as a main destination in Southeast Asia. There are diving spots here that Europeans love to travel to,” she added.
Meanwhile, Mr. Saint-Martin said that the EU-Philippines FTA is not just a beneficial agreement but a necessary tool in unlocking the full potential of the France-Philippines partnership.
“It will enhance market access, create new business opportunities, and provide a clear and predictable framework for investors on both sides,” he said.
“Therefore, France fully supports these negotiations and stands ready to work alongside the Philippines to achieve a cooperative and mutually beneficial agreement,” he added.
According to Trade Undersecretary Allan B. Gepty, the Philippines and the EU are set to meet in a third round of negotiations in June.
“I can say that our negotiations are still on track based on the timelines that we have agreed on. But of course, we are also conducting intersessional meetings so that we can address our issues in the various chapters we are negotiating,” he said.
“So far, negotiations have been very smooth. Our engagement with our counterparts in the EU was very productive and constructive. So we are really hoping that we can fast-track the text-based negotiations so we can already start with the market access aspect,” he added.
He said that one of the factors driving the Philippines to conclude a deal quickly is its impending departure from the EU GSP+ program.
“We are trying to avoid our preferential trade in the EU market being disrupted. It is very important that before we graduate from the EU GSP+, we conclude negotiations for the FTA,” he added. — Justine Irish D. Tabile