The Philippines and Chile have begun the second round of trade negotiations, which could be the Philippines’ first bilateral free trade agreement (FTA) with a Latin American country.
Trade and Industry Undersecretary Allan B. Gepty, who leads the technical team of the Philippine delegation for the reciprocal 20 percent tariff negotiation, left the U.S. on July 20 for Santiago, Chile, to attend to the scheduled second round of talks for the bilateral Comprehensive Economic Partnership Agreement (CEPA).
Gepty noted that the ongoing discussions in Chile mark the second round of negotiations, following initial talks held in May this year. The negotiations have progressed swiftly, just months after both countries launched the CEPA talks on December 6, 2024.
The CEPA aims to go beyond trade in goods and services by including key areas such as intellectual property rights, the digital economy, micro, small, and medium enterprises (MSMEs), the environment, labor, and trade and gender, among others.
At the launch of the CEPA negotiations, Trade and Industry Secretary Cristina A. Roque highlighted the potential of the agreement stating, “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.”
Roque emphasized that the CEPA presents significant benefits for the Philippines, including improved market access for key exports, increased consumer welfare through lower prices of goods, and streamlined trade rules.
The agreement is also expected to strengthen economic ties between the Philippines and the Latin American region. This joint initiative reflects the shared vision of both countries to expand economic opportunities and deepen their partnership on the global stage. Through the CEPA, the Philippines and Chile aim to foster a more robust and mutually beneficial relationship.
