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Philippines and France conducted their 10th Joint Economic Cooperation meeting, with the latterpresenting concrete deliverables and proposals on air transport service, infrastructure, agriculture, and energy.
PHILIPPINES-FRANCE 10TH JOINT ECONOMIC COOPERATION — (Shown in photo from left to right) – French Treasury Deputy Director Denis Le Fers, DTI Secretary Fred Pascual, French Foreign Trade Minister Olivier Becht, and DTI Assistant Secretary Allan B. Gepty
Trade and Industry Secretary Alfredo E. Pascual, who is currently leading a 3-week investment roadshow (June 18-July 6) in Europe where the JEC meeting was part of, and his French counterpart Minister Delegate for Foreign Trade, Economic Attractiveness and French Nationals Abroad Olivier Becht expressed full commitment to deepen economic cooperation, trade, and investment between the two countries during the JEC meeting on June 20 in Paris.
In a statement, Pascual said the main highlight of the JEC was the presentation of concrete deliverables and proposals on air transport service, infrastructure, agriculture, and energy.
Minister Becht presented to Pascual three letters of intent extending French expertise and technical support in developing the Philippines’ dairy industry; and concrete proposals of Aéroports de Paris (ADP) on aviation and the French Treasury and Matière on road bridges.
The JEC meeting also discussed commitments on bilateral cooperation in infrastructure and transportation, aeronautics, renewable and other energy sources, agriculture, electronics, maritime industry, and shipbuilding sectors.
During the opening session, Pascual highlighted that of the 33 JECs the Philippines has, France is one of the few JECs that was conducted at the Ministerial level. “This fact highlights France’s important role in our overall relations with Europe. Indeed, we accord high importance to the JEC as a mechanism to continuously enhance our economic relations, particularly in trade and investments,” said Pascual.
Further, the Trade Ministers witnessed the signing of the two separate Memorandums of Understanding (MOUs) that were signed by the National Power Corporation (NPC) and the Mindanao Development Authority (MinDA) with Hydrogène de France (HDF) to facilitate the development of renewable energy and hydrogen power plants in the Philippines, the first project of its kind to be undertaken in Southeast Asia.
Both countries vowed to continue cooperation on ongoing projects such as the commitment of OCEA, a French company, to build a shipyard in the Philippines, technical cooperation on maritime safety through the placement of a French marine expert in Manila, and on nuclear energy through an upcoming study mission.
It can be recalled that during the 9th PH-FR JEC in July 2021, the Philippines welcomed OCEA’s pledged investment worth P1.5 billion in shipyard development in the Philippines.
The company likewise renewed this commitment during the President’s visit to Belgium in December last year. The Philippines also received 26 French companies from the MEDEF Business Delegation headed by CEO Philippe Matière in October 2022. And just last month, the Philippines’ flag carrier—Philippine Airlines signed an MOU with Airbus for the purchase of nine units of Airbus aircraft.
During the technical session of the JEC led by DTI Assistant Secretary Allan Gepty and Deputy Director Denis Le Fers, the Philippines likewise expressed its continued interest in forging space cooperation with the Centre National D’Etudes Spatiales (CNES), the French Space Agency. On 28 November 2022, following CNES’ invitation during the last JEC meeting, PhilSA signed the Space for Climate Observatory (SCO) Charter, making it the National Focal Point (NFP) of the Philippines in the French-led climate resilience initiative.
Meanwhile, on aviation, Civil Aviation Authority of the Philippines (CAAP) Deputy Director General Edgardo Diaz reaffirmed the Philippines’ commitment to the MOU with the Direction Générale de l’Aviation Civile (DGAC) or the French Civil Aviation Authority, which was renewed in 2021. Both sides welcomed the ongoing discussion with Thales on air traffic management.
Updates on transportation and infrastructure projects were also discussed during the meeting. These include the existing ventures of French companies, such as Colas Rail, Alstom, Thales, and Egis, on the Metro Manila Subway and North-South Commuter Railway projects. Likewise, the status of projects on bus rapid transit, train signaling systems, and urban cable car was also tackled.
On agriculture, France conveyed their focus on supporting the development of the Philippines’ dairy industry, which includes a possible deployment of a French dairy expert. France also shared their efforts in fighting the highly pathogenic Avian Influenza (HPAI) through zoning and vaccination.
The ongoing study on the Philippines’ electronic industries was also discussed during the meeting. This will pave the way for possible future partnerships in electronics, in support of the existing linkages such as the MOU between the ACSIEL Alliance Electronique and Semiconductor & Electronics Industries in the Philippines (SEIPI).
Apart from these significant opportunities, Pascual also highlighted nickel processing as a potential area for collaboration, taking into consideration two things: (1) The French territory of New Caledonia having significant nickel resources and is a major supplier of processed nickel for battery manufacturers, and (2) France as a global leader on electric vehicles. These are two sub-sectors where the Philippines has significant aspirations.
The two trade ministers also underscored the growing trade and investment figures. In 2022, total trade between the Philippines and France grew to $800 million, up by 23 percent, from its 2021 level.
In particular, Philippine exports to France were up by nearly 50 percent from $14 million in 2021 to $756 million in 2022.
Top products included electronics products, spectacle lenses, parts of airplanes, desiccated coconuts, and semiconductor devices. French exports similarly increased by nine percent from $990 million in 2021 to $1 billion in 2022. The products include airplanes, medicaments, electronics, handbags, and meat products.
On the investment front, France is one of the Philippines’ top sources of foreign investments from the EU, with six-year total investments from 2017 to 2022 of P6.7 billion or $130 million. These investments were in manufacturing; electricity, gas, steam, and air conditioning, supply; wholesale and retail trade; transportation and storage; information and communication; and administrative and support service activities. — Bernie Cahiles-Magkilat
