Sweden expects more investment in the Philippines once EU free trade deal is signed

Swedish companies are expected to invest more in the Philippines once the proposed free trade agreement (FTA) between the Philippines and the European Union (EU) is finalised, according to Edge Davao.

Swedish Ambassador to the Philippines Anna Pernilla Ferry raised the point at a press briefing in Makati City on Friday. She said the agreement should strengthen trade and investment links between the two sides. "That will also make a big push for trade and investment between our countries," Ferry said.

In September, the Philippines and the EU announced a substantial agreement on the proposed trade deal. Signing is expected in 2027.

The FTA is also seen as a way to keep preferential access to European markets for Philippine exports. The country's eligibility for the EU's Generalized Scheme of Preferences Plus (GSP+) is changing because the Philippines has graduated to upper-middle-income status. GSP+ currently gives more than 6,000 Philippine products duty-free entry into the EU.

Ferry pointed to Vietnam and Singapore as examples. Both have trade agreements with the EU, and she said those deals have encouraged closer commercial ties and more investment.

Around 60 Swedish companies operate in or are represented in the Philippine market, the ambassador said. She described this as an established base for further expansion.

Ferry cited Business Sweden's latest business climate survey, which found that about 38 of the Swedish companies surveyed were optimistic about the Philippines. She said these firms plan to expand operations, invest more and hire more workers.

She added that Swedish businesses remain confident in the country despite global economic uncertainties, including the fuel price crisis. She credited the Philippines' macroeconomic fundamentals, work culture and pool of skilled talent.