MAKATI, PHILIPPINES — The Philippines and the United Kingdom (UK) successfully convened the 4th Economic Dialogue under the chairmanship of the Department of Trade and Industry (DTI) Undersecretary Ceferino S. Rodolfo and Her Majesty’s Ambassador to the Philippines Laure Beaufils on 19 May 2023 in Makati City, Philippines. During the Dialogue, Undersecretary Rodolfo and Ambassador Beaufils signed and adopted the Philippines-United Kingdom Partnership Statement on Trade, Investment, and Economic Cooperation.
In a meeting held prior to the event, Trade and Industry Secretary Fred Pascual stated, “The UK has been the country’s major trading partner and 4th source of investments both in 2021 and 2022. We foresee these figures to further improve with our increasing engagements with the UK across many fora, including the Philippines’ coordinator role for the ASEAN-UK economic relations and investment campaign ‘Make It Happen’ launched in partnership with the UK Government’s Investment Promotion Programme.” This statement from Secretary Pascual served as a unifying message for the conduct of the Economic Dialogue.
Toward strengthening economic linkages, both sides lauded the launching of the Developing Countries Trading Scheme (DCTS) and the British Investment Partnerships (BIP) that will boost trade and investments. Undersecretary Rodolfo remarked, “We thank the UK Government for the partnership and collaboration over the years. The DCTS and BIP are solid frameworks that will ensure our economic relations will remain still strong
as ever. The Philippines will continue to work with the UK government to realize concrete opportunities and foster more synergies in areas of mutual interest—in trade, investment, and renewable energy, to name a few.”
During the Economic Dialogue, the UK presented the benefits of the DCTS for the Philippines based on the analysis of Boston Consulting Group. The Scheme offers duty-free, quota-free trade on 92% of eligible goods, which covers 99% of Philippines exports to the UK. Expected high-performing sectors in the Philippines that will gain from DCTS include electrical machinery and goods, optical and precision instruments, tropical fruits and nuts, and animal and vegetable oils and fats. The scheme also has simplified trade and monitoring conditions. DTI Undersecretary Rodolfo highlighted, “We look forward to the full implementation of DCTS next month. The UK DCTS will be the most generous preferential scheme that the Philippines will benefit from. The DCTS presents good commercial opportunities for important sectors that generate huge employment in the Philippines. This will likewise support the DTI’s goal to position the Philippines as a regional destination for high-cost and premium manufacturing and services that fully recognizes the great value of sustainability, connectivity, and innovation.”
Further, the Economic Dialogue paved the way for the Philippines and the UK to continue discussions on the opportunities in renewable energy (offshore wind), nuclear energy, sustainable infrastructure services and transportation. More importantly, the discussion complements the country’s leapfrogging strategy to spur industrial development on
sustainable transportation systems and renewable energy, following the recent tariff elimination for certain EV parts and components and the opening of renewable energy projects for 100% foreign ownership. Representatives from the UK and PH governments exchanged ideas on potential collaborations to work on sustainable infrastructure projects and to leverage economic partnerships to promote an enabling business environment through ease of doing business, regulatory excellence, and digitalization. Aligned with the DTI’s direction in improving business climate in the country, DTI Undersecretary Rodolfo further emphasized the new Executive Order (EO) No. 18 on the establishment of green lane for strategic investments.
Prior to the Economic Dialogue, Secretary Pascual welcomed the visit of UK Trade Envoy Richard Graham last 26 April 2023. During the meeting, he said, “The renewable energy/power sector remains dominant in our investment priorities with Php440 billion in approvals to date. The number of RE projects coming in is concrete evidence that we are on our way to becoming a global hub for sustainability and green projects, aligned with the national government’s policy of promoting cleaner and more sustainable sources of energy.”♦
Date of release: 08 June 2023
