The trade relationship between the United Kingdom (UK) and the Philippines is set to deepen as both countries adapt to global uncertainties and seek to diversify their trade relations, according to Chris Nelson, Executive Chairman of the British Chamber of Commerce Philippines (BCCP).
In a news release, Nelson highlighted how recent shifts in US trade policies, particularly under President Donald Trump’s administration, have pushed countries, including the UK and the Philippines, to explore alternative trade opportunities.
“I think the clear attitude of the moment from our Members’ feedback is uncertainty. And that’s the last thing you need in business,” Nelson said. “As much as you can, you want to try and plan and plan long term. Now, this is specific to trade with the US. However, what we are trying to discuss is to look at other areas of opportunity.”
Currently, the UK remains one of the Philippines’ key trading partners, with total trade in goods and services amounting to £2.8 billion.
Nelson pointed out that the recent inaugural meeting of the Joint Economic and Trade Committee (JETCO) in March 2025 was a significant step in strengthening bilateral trade.
“What we are trying to do is to look at other areas of opportunity,” he said, noting that the discussions aimed at addressing market barriers and exploring areas of mutual interest, such as agriculture, energy, technology, and infrastructure.
Though the possibility of a free trade agreement (FTA) remains distant, Nelson said it is important to leverage existing mechanisms like the Developing Countries Trading Scheme (DCTS), which already benefits Philippine businesses.
“It takes two to three years to negotiate a free trade agreement, so there are time and resources involved. I think in the case of the UK, it’s identifying what can be done in the shortest term possible,” he said.
“Let’s not forget there is the Developing Countries Trading Scheme in which over 90% of goods from the Philippines to the UK are almost tariff-free,” he added.
Among economic reform the government is pushing s to improve the ease of doing business are the Konektadong Pinoy Act, E-Governance Act, and Cybersecurity Act.
Nelson said that these reforms would further enhance the country’s appeal to foreign investors, especially in sectors such as infrastructure, renewable energy, and technology.
Looking ahead, the Philippine Economic Zone Authority (PEZA) will lead an investment mission to the UK from June 25-27, 2025. This initiative is expected to highlight the Philippines’ expanding economic opportunities and attract further UK investment in sectors like manufacturing, logistics, and renewable energy.
As both nations continue to explore opportunities for collaboration, Nelson expressed optimism about the potential for UK-Philippines trade to grow, particularly in the context of diversifying global trade relationships.
“We remain confident in the Philippines’ growth potential,” he said.