The Philippines is set to formally apply for membership in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) before the end of the year, aiming to launch free trade negotiations by 2026 as the trade pact is key to expanding access to the United Kingdom’s huge market.
Trade and Industry Undersecretary Allan B. Gepty outlined this strategy during the British Chamber of Commerce of the Philippines’ 2025 Midyear Economic Briefing: Powering Growth Through Policy, Partnership, and Innovation, on Friday, July 31, at the Dusit Hotel Makati.
Gepty, who leads the technical team in the country’s FTA negotiations, also revealed that the CPTPP is among 13 free trade agreements the government aims to conclude before President Ferdinand Marcos Jr. finishes his term in 2028.
“I don’t want to sound presumptuous, but CPTPP would be a major framework per our engagement with the UK,” said Gepty.
Gepty emphasized that the United Kingdom’s recent accession to the CPTPP serves as a major incentive for the Philippines to join the trade bloc.
Without the UK in the CPTPP, he noted, the Philippines would only gain access to markets such as Mexico, Peru, Chile, and Canada. “But the entry of the UK in the CPTPP basically signals that it will give the Philippines better market access with one of its major trading partners,” he pointed out.
The CPTPP currently includes 12 member countries: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United Kingdom, and Vietnam. The UK is the newest member and the first European nation to join the bloc, officially acceding on December 15, 2024.
“So, we hope that we can already start the process early next year once we have submitted the application,” he added.
The CPTPP marks the third of three key frameworks the Philippines is pursuing to deepen its economic ties with the UK. The first is the Joint Economic and Trade Committee (JETCO), under which four sectoral groups were established. Through this mechanism, the Philippines secured $6.3 billion in financing from UK Export Finance for projects in infrastructure, renewable energy, and digital industries.
The second framework involves the UK’s Developing Countries Trading Scheme (DCTS), which Gepty said has contributed to rising Philippine exports to the UK.
Effective June 2023, the DCTS provides duty-free access for 92 percent of tariff lines, covering 99 percent of Philippine exports. The estimated annual tariff savings for Philippine exporters—including those in tuna, apparel, and tropical goods—amount to $26.7 million. This scheme replaced the UK’s Generalized Scheme of Preferences and offers more than 150 tariff cuts across various sectors.
Despite a decline in overall bilateral merchandise trade—from USD 1.34 billion in 2023 to USD 1.21 billion in 2024—Philippine exports to the UK rose 7.8 percent to USD 546.5 million, surpassing the previous peak of USD 544.9 million in 2022.
Meanwhile, imports from the UK fell by 20.7 percent, from USD 835 million to USD 663 million.
Over the five-year period from 2020 to 2024, Philippine exports to the UK grew by 35 percent, underscoring the increasing competitiveness of Filipino goods in the British market.
In 2024, Philippine exports to the UK were led by machinery for boys and image reception, electronic integrated circuits, and textile products.
