A trade pact between the Philippines and the European Union (EU) should be signed before 2016, businessmen yesterday said, else the country risk ­being left behind by Southeast Asian neighbors that are negotiating similar agreements.

Gregorio S. Navarro, president of the Management Association of the Philippines, said: "These things take time, but we would like to see this done during this administration."

"We need to be part of any free trade agreements (FTA), whether on a bilateral or multilateral platform. Otherwise, we will be left out," Mr. Navarro said.

Henry J. Schumacher, vice­ president at the European Chamber of Commerce of the Philippines, held the same view: "[We] hope before the term of President [Benigno S.C.] Aquino [III] ends. The FTA will be good for Philippine and EU businesses and will widen the scope of cooperation and partnership between companies, especially SMEs (small and medium enterprises)."

American Chamber of Commerce of the Philippines Senior Adviser John D. Forbes, for his part, said: "The next 18 months is a reasonable time frame in which to complete negotiations. Sooner is better than later."

"The Philippines should avoid falling behind others in these arrangements [as it] will link the Philippine economy into very large markets and attract potential higher levels of FDI (foreign direct investment) and trade," Mr. Forbes said.

These statement came a day after the Trade department said on Monday that it hopes to conclude scoping discussions — which will determine sectors that will be covered by the FTA — with the EU by the end of the year.

"After scoping, then both parties will get their respective mandates and undergo internal processes to start formal negotiations," Trade Undersecretary Adrian S. Cristobal, Jr. yesterday said in a text message.

Mr. Cristobal would not, however, say when formal negotiations are expected to start, saying:

"It is difficult to set a timetable for negotiations." Officials of the Delegation of the European Union to the Philippines were not immediately available for comment yesterday.

FTA talks between the Philippines and the EU first began on Feb. 9, 2009, after the latter's plan of a region­to­region approach with the ten­member Association of Southeast Asian Nations (ASEAN) failed due to the political difficulties of negotiating a trade pact that included Myanmar.

ASEAN groups Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam.

Among the region's members, Singapore was the first country to conclude an FTA — signed December 2012 ­ with the EU.

Apart from the Philippines, the European bloc is also currently negotiating trade pacts with Malaysia, Vietnam, and Thailand.

The Philippines has only one bilateral FTA, the Japan­Philippines Economic Partnership Agreement.

As an ASEAN member, however, the country also enjoys the group's economic agreements with China, South Korea, Australia, New Zealand, and India.

 Source: Business World, 23 April 2014