India and Philippines on Tuesday exchanged the terms of reference of a Preferential Trade Agreement (PTA) that will build on the liberal terms already offered by Asean-India Trade in Goods Agreement (AITIGA) for bilateral trade.
The Philippines as a member of the Association of Southeast Asian Nations (Asean) is already covered by AITIGA which has been functional since 2010. Through PTA both sides will be able to fine-tune the concessions suited for enhancing bilateral trade.
“In our trade discussions we are looking for more market access for our agricultural products – potatoes and grapes are a priority. There are expectations to try and open up services also. India is offering oil and gas consultancy,” secretary east in the Ministry of External Affairs (MEA) P Kumaran said in a briefing on the state visit of the President of Philippines Ferdinand R. Marcos Jr to India.
The Philippines has some special technologies for growing seaweed. We are also interested in growing seaweed in the coming years for nutrition, he added.
Bilateral trade, PTA scope and digital linkages
The Philippines has been named the coordinator for India in the Asean till 2027 and it is India’s priority to complete the review of AITIGA as early as possible, Prime Minister Narendra Modi said in his remarks at the joint press statement after the delegation level talks with Marcos.
Other members of the Asean are Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam. With Thailand and Singapore India also has bilateral trade agreements.
“The Philippines also supported our request to expedite AITIGA review which we hope will conclude before the end of the year,” Kumaran said.
India-Philippines bilateral trade was around $ 3.3 billion in the last financial year with exports from India at $ 2.16 billion and imports at $ 1.17 billion. India’s top export to the Philippines is pharmaceuticals and imports are minerals and gems.
There were broad discussions on diversifying trade, expanding the range of our products for trading between India and Philippines and also to identify specific areas that can feed into potential PTA. “Both countries are also exploring cooperation for linking payment systems,” the secretary said.
Infrastructure, strategic ties and investment plans
The Philippines also invited India for supporting large infrastructure projects. “We will be getting seriously involved in infrastructure development projects and considering participation in them. The PM also offered to share the Gatishakti platform for coordinated infrastructure development,” Kumaran said.
Indian companies have invested upwards of $ 5 billion in the Philippines of which $ 1.2 billion have gone directly and rest through other countries.
During talks both sides also agreed to elevate the India Philippines cooperation to the level of strategic partnership across a vast number of sectors including political cooperation, defence, security and maritime cooperation, trade and investment healthcare and pharma, cooperation in science and technology, space, connectivity, digital economy and fintech.
Both sides also adopted a plan of action for the period 2025 to 2029 and inked 14 agreements and MoUs during the talks.