New Delhi [India], March 17 (ANI): Philippines’ Secretary for Foreign Affairs Enrique Manalo on Monday said that a bilateral Preferential Trade Agreement (PTA) with India is under discussion, and his country is keen to deepen engagement with Indian businesses.
Interacting with the FICCI members here in the national capital, the Philippines’ Secretary for Foreign Affairs said they are keen on deepening engagements with India in a number of areas: automotive, battery, value-added IT and ITES services, pharmaceuticals, health, and agriculture.
In particular, FICCI said in a statement that the Philippines invited India to source nickel from it for battery manufacturing.
This was part of the Philippine’s strategy to diversify away from its current 98 per cent dependence on Chinese buyers of nickel. The Philippines accounts for 11 per cent of the global production of nickel and will be the world’s second-largest producer of nickel in 2023.
In his address to Indian business leaders, Secretary Manalo emphasised the strategic importance of developing the Philippines’ nickel sector with Indian participation.
“The Philippines is the world’s largest exporter of nickel ore with exports valued at approximately USD 1.95 billion, chiefly used in lithium-ion battery production,” he said.
“Currently, nearly 98 per cent of our exports go to China, with Japan importing the remaining 2 per cent. We are quite interested to see India become a player in our nickel sector, not just for export diversification but crucially for processing and development of a value chain. India imports about USD 707 million worth of raw nickel from Russia, Norway, and Japan” Manalo noted, suggesting an opportunity for supply chain realignment. 
“This represents a natural complementarity between our economies that remains largely unexploited.”
The Secretary emphasised the need to accelerate negotiations on a bilateral preferential trade agreement (PTA) that has been under preliminary discussion for two years, calling it crucial to diversifying and expanding commercial relations between the two Indo-Pacific economies.
Also, Philippines is undertaking major vehicle modernisation programme and invited Indian commercial vehicles to take part in the same, as per the FICCI statement.
“We consider India to hold significant untapped potential as a market for Philippine exports,” Manalo told the gathering of industry leaders, highlighting an untapped export potential of USD 577 million.
“We are keen to transition from these scoping exercises to the actual negotiations of a preferential trade agreement that will certainly help drive growth upward,” Manalo added, as per the FICCI statement.
India primarily supplies pharmaceuticals, automotive components, and agricultural products to the Philippines, while the Southeast Asian nation exports electronic goods, machinery, and select agricultural commodities.
The investment pitch comes as bilateral trade between India and the Philippines reached approximately USD 3.5 billion in 2024, nearly doubling over the past few years.
FICCI President, Harsha Vardhan Agarwal noted during the session that India’s pharmaceutical industry plays a significant role in the Philippine market, accounting for around 20 per cent of total Indian pharmaceutical exports to the Asian region.
“While we continue to be engaged through trade and investment, I’m happy to see that engagement is diversifying into new and strategic sectors,” the FICCI President said, highlighting waste management, green mobility, and agriculture technology as promising areas for collaboration alongside the growing defence partnership marked by India’s delivery of BrahMos supersonic cruise missiles to the Philippines in April 2024.
To facilitate increased business engagement, Secretary Manalo highlighted the e-visa system already instituted for Indian travelers and business visitors. “We are meeting even as we speak to see how we can further enhance and improve the visa system specifically for India,” he revealed.
The Philippine Ambassador to India, Josel Francisco Ignacio elaborated on several visa facilitation measures, including a “fast track” process for legitimate businesses with investments in the Philippines, especially for emergency and business visits.
“The e-visa allows you to get multiple entry visas for six months or one year, and we’re also trying to streamline that process,” the ambassador stated, adding that further improvements would be announced soon. (ANI)
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