WT/REG394/M/1  
11 December  2020 
(20-8943) Page: 1/3 
Committee on Regional Trade Agreements  
Ninety -eighth  Session    
 
  
FREE TRADE AGREEMENT  BETWEEN THE EFTA STATES  (ICELAND, LIECHTENSTEIN, 
NORWAY AND SWITZERLAND)  AND THE PHILIPPINES  (GOODS  AND SERVICES ) 
NOTE ON THE MEETING OF  18 NOVEMBER  2020 
Chairm an: Ambassador H.E. Mr. Mārtiņš KREITUS (Latvia ) 
1.1.  The 9 8th Session of the Committee on Regional Trade Agreements (hereinafter  "CRTA " or the 
"Committee ") was convened in Airgram WTO/AIR/RTA/ 23/Rev.1  dated 6 November  2020. 
1.2.  Under Agenda Item C.IV of the Session, the CRTA considered the Free Trade Agreement 
between the EFTA States (Iceland, Liechtenstein, Norway and Switzerland) and the Philippines, 
goods and services (hereinafter "the Agreement").  The Chairman  stated that the Factual 
Presentation had been prepared by the Secretariat on its own responsibility in full consultation with 
the Parties, in accordance with paragraph 7(b) of the Transparency Mechanism for Regional Trade 
Agreements (document WT/L/671).  
1.3.  The Chairman  indicated that the  Agreeme nt had entered into force on 1 June 2018 for the 
Philippines, Liechtenstein, Norway and Switzerland; and 1 January 2020 for Iceland. There had been  
two notifications of the Agreement, reflecting its staged entry into force for the Parties; these had 
taken  place on 26 October 2018 and 12  November 2019. The Agreement  had been notified under 
Article  XXIV:7(a) of the GATT  1994 (documents WT/REG394/N/1 and WT/REG394/N/2)  as an 
agreement covering trade in goods, and under GATS  Article  V:7(a) (S/C/N/919 and 
S/C/N/919/Add.1) as an agreement covering trade in services.  The text of the Agreement was 
available, together with its Annexes, on the Parties' official websites. The Fa ctual Presentation on 
the goods and services aspects (document  WT/REG394/1 dated 3 September 2020) and questions 
and replies on this Agreement (document WT/REG394/2 dated 5 November 2020) had been 
distributed.  
1.4.  The representative of the Philippines  thanked  the WTO Secretariat for its work in preparing the 
Factual Presentation, and to the EFTA Member States for their excellent cooperation in conducting 
the review. The Philippines and the EFTA Member States enjoy ed dynamic economic and trade 
relations. EFTA was an important trading partner for the Philippines in Europe. Entering into an FTA 
with EFTA was part of the Philippines'  over-all economic strategy to gain a stronger foothold in the 
European market. The Agreement  was also an important part of the trade negotiation agenda of the 
Philippines, particularly in diversifying markets and sources  for Philippine products and services as 
well as enhancing engagement with non -traditional partners.  
1.5.  The Agreement had been  signed on 28 April 2016 in Bern, Switzerland. It entered into force 
on 1 June 2018 for the Philippines, Liechtenstein, Norway and Sw itzerland and on 1 January 2020 
for Iceland. The Agreement was negotiated in the context of and as a follow -up to the Joint 
Declaration on Cooperation between the Philippines and the EFTA States signed in 2014. It will be 
fully implemented by 1 January 202 7.  
1.6.  As dedicated Members  of the WTO, the Parties to the Agreement also reaffirm ed their rights 
and obligations under the WTO Agreement and the other agreements negotiated thereunder, and 
any other international agreement s to which they are part ies. Althoug h only the Philippines ' second 
bilateral FTA, it was one of the most progressive in terms of scope and coverage. The Agreement WT/REG394/M/1  
 
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  cover ed provisions on trade in goods, trade in services, investment, intellectual property rights, 
competition, and government pr ocurement, among others.  
1.7.  This was also the first Agreement  of the Philippines with a dedicated chapter on trade and 
sustainable development. The P arties had agreed not to weaken, reduce or derogate from the levels 
of environmental or labo ur protection provided for in its respective laws, rules and regulations with 
the sole intention to encourage investment or to enhance competitive trade advantage. The 
provisions under the Trade and Sustainable Development Chapter ensure d that the economic 
objectives of the Agreement  would be achieved through sustainable means.  
1.8.  The Philippines was pleased to note that the benefits brought by th e Agreement  were 
already  visible . In 2019, total trade between the Philippines and EFTA increased by 2.40% from 
USD 802 million in 2018 to USD  821 million in 2019. The Philippines had likewise turned around its 
deficit with EFTA by posting a trade surplus of around USD  47 million. Philippine exports to EFTA 
had grown  by 17% from USD  370 million in 2018 to USD  434 million in 2019. The Philippines hope d 
that trade and investment relations with EFTA would continue to expand as the Parties gradually 
move d closer to the Agreement 's full implementation. The Philippines thank ed WTO Members, 
particularly Canada, the European Union, Mexico , and Thailand, who had expressed interest in the 
Agreement and sent written questions in advance of the meeting. Replies had been provide d and he 
stood ready to respond to any further questions from Members.  
1.9.  The representative of Switzerland  on behalf of the EFTA States thanked t he Secretariat for 
preparing th e factual presentation on the A greement and facilitating this discussion. She hoped that 
it gave Members a comprehensive overview, and with her Philippine colleagues stood ready to 
answer any questions in cooperation either on the day  or in writing.  She noted that t he Agreement 
had been  signed in Bern in 2016 after a relatively fast process, only one year after the negotiations 
were started.  She deeply appreciate d the positive attitude and high level of expertise that had made 
this possible.  An ambitious and modern Agreement had been  achieved in many areas, such as trade 
in goods, services, the protection of intellectual property rights as we ll as trade and sustainable 
development. The Agreement had entered into force in 2018 for Liechtenstein, Norway and 
Switzerland and in 2020 for Iceland. Although it was too early to fully assess the effects of the 
Agreement, a positive tren d already visibl e was imports from the Philippines increasing from 
USD 250 million in 2017 to more than USD 300 million in 2019 . There was clear potential to boost 
trade further. Th e Agreement was essential to achiev ing that by providing stable and predictable 
framework conditions for trade, that were particularly important in a time of global uncertainty.  
1.10.   In closing she thank ed the Philippine colleagues for their cooperation and help, both for th e 
factual presentation and in making the Agreement work for the mutual benefit  of the Parties . She 
looked forward to hearing any questions and remarks.  
1.11.   The representative of the European Union  thanked the Parties for their presentations and for 
the replies to the EU's written questions. The EU noted the provisions of the Agreement on 
investment, small and medium sized enterprises, sustainable development on labour and 
environment and on e -commerce.  
1.12.   The representative of the United States  thanked the Secreta riat and the Parties for the 
transparency in relation to the Agreement . She noted that both Parti es had non -notified Agreements  
that were in force  and invited them to present notifications of such agreements  promptly .  
1.13.   The representative of Canada  thanked the Parties for their transparency and the Secretariat 
for the preparation of the Factual Presentation.  
1.14.   The Chairman  noted that the consideration of the Goods and Services Aspects of the Free 
Trade Agreement between the EFTA States (Iceland, Liechtenstein,  Norway and Switzerland) and 
the Philippines, ha d allowed the Committee to clarify a number of questions and thus conclude d oral 
discussion of th e RTA in accordance with paragraph 11 of the Transparency Mechanism. If any 
delegations wish ed to ask follow up questions they were invited to forward submissions in writing to 
the Secretariat by 25 November 2020 and Parties were asked to submit replies in writing by no later 
than 9 December 2020. In accordance with paragraph 13 of the Transparency Mechanism all written 
submissions, as well as minutes of this meeting w ould be circulated promptly, in all WTO official 
languages, and w ould be made available on the WTO website.  WT/REG394/M/1  
 
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  1.15.   The Committee  took note  of the comments made.  
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