By Monsi A. Serrano
France is setting its sights on the Philippines as a rising hub for trade and investment in Southeast Asia, signaling renewed confidence in the country’s growth trajectory and governance reforms under the Marcos administration.
During the 11th Philippines–France Joint Economic Committee (JEC) meeting, both countries reaffirmed their shared commitment to strengthening economic cooperation, opening new channels for investment, and building stronger partnerships across key industries, from infrastructure and energy to aerospace, transport, and maritime development.
The high-level talks brought together senior government officials and business leaders from both nations to deepen bilateral engagement and explore new frontiers for collaboration. Discussions spanned public works, agriculture, mobility, cybersecurity, and human capital development. These highlight a broad, future-oriented agenda designed to create jobs, spur innovation, and enhance market access.
Meanwhile, the Department of Trade and Industry (DTI) presented the Philippines’ ongoing policy reforms, including investment incentives under the CREATE MORE Act and flagship infrastructure projects that reinforce the country’s competitive advantage. France, for its part, expressed strong optimism about the Philippines’ economic potential, with growing interest from French companies seeking to participate in emerging opportunities in the local market.
France also reaffirmed its strong support for the Philippines–European Union Free Trade Agreement (PH–EU FTA), emphasizing that a comprehensive trade accord would further unlock investment and accelerate economic integration with Europe.
During the press conference following the meeting, both sides reiterated their determination to address key business challenges. From the French delegation, Ms. Magali Cesana, Head of the Bilateral Affairs and International Business Development Department of the French Treasury, noted that while companies face sector-specific issues such as procedural delays and administrative hurdles, both governments are working to streamline processes without compromising transparency. The implementation of the government-to-government (G2G) financing framework, signed on June 24, 2024, was cited as a major milestone toward more efficient project approvals and enhanced coordination.
The Philippine side highlighted the JEC’s vital role as a platform for resolving trade and investment barriers. Officials cited the finalized HPEI regionalization arrangement, which facilitates French exports to the Philippines, as an example of the partnership’s tangible progress. Both parties also discussed efforts to improve market access and cooperation under the ongoing EU–Philippines FTA negotiations.
Infrastructure, energy, agriculture, mobility (particularly railways), maritime, and space technologies were identified as priority sectors for future collaboration. The recently signed Coast Guard vessel project under the G2G framework was noted as a model of successful bilateral cooperation.
Both sides also underscored the importance of integrity and transparency in building investor confidence. France emphasized the role of good governance and strong institutions in attracting long-term investments, while the Philippines reiterated that corruption is a global issue that requires continued collaboration and vigilance.
“Our relations with France remain vital as we pursue the Philippines–EU Free Trade Agreement. France has been one of our strongest supporters in advancing this initiative,” said DTI Undersecretary Allan Gepty, who co-chaired the meeting on behalf of the Philippines. “The JEC discussions were very substantive and constructive, covering a wide range of sectors that reflect the growing confidence of France in the Philippines’ economic potential.”
“Moving forward, our economic relations with France look very promising. We see new prospects for cooperation and investments, particularly as we work toward deeper trade relations with the EU,” Gepty added.
France expressed optimism about the Philippines as an investment destination, recognizing its expanding role in global value chains, particularly in electronics, agriculture, aerospace, and renewable energy. French representatives also encouraged greater awareness of Philippine export potential, especially in high-value and sustainable goods.
For its part, the Philippines reaffirmed its goal of diversifying markets and expanding its FTA network amid shifting global trade dynamics, including recent tariff adjustments in other economies.
Currently, France ranks as the Philippines’ 19th largest trading partner, with total bilateral trade valued at approximately USD 1.54 billion in 2024. Both sides acknowledged that while current levels remain modest, there is significant untapped potential and a shared resolve to elevate economic ties through stronger cooperation, awareness, and investment promotion initiatives.
“The growing presence of French companies in the Philippines demonstrates their confidence in the market’s potential and their interest in developing new areas of collaboration,” said the French delegation co-chair, underscoring the importance of transparency and efficiency in project implementation.
As the Philippines and France advance discussions toward the PH–EU Free Trade Agreement, both sides view the JEC as a critical mechanism for driving innovation, strengthening institutional cooperation, trade relations, and advancing an inclusive and sustainable economic partnership.