Philippines, India Set Sights on Preferential Trade Talks Next Year

News | National Posted on 2026-09-23 14:22:07

MANILA – The Philippines and India are preparing to begin negotiations on a proposed preferential trade agreement (PTA) next year, with both sides seeking to expand bilateral commerce and tap additional opportunities for economic growth.

Indian Ambassador to the Philippines Harsh Kumar Jain said Wednesday that trade between the two countries remains relatively small compared with India’s overall trade with the Association of Southeast Asian Nations (ASEAN), indicating room for stronger economic engagement.

Speaking to reporters on the sidelines of the ASEAN-India Business Forum in Makati City, Jain said India’s trade with the 11-member ASEAN bloc is estimated at about USD128 billion, while bilateral trade with the Philippines stands at around USD3.9 billion.

He noted that the Philippines accounts for approximately 11.6 percent of ASEAN’s gross domestic product (GDP) but represents only about 3 percent of India’s trade with the regional bloc.

“This also means that there is a potential for a stronger relationship, and that is why we are looking at having a preferential trade agreement between India and the Philippines,” Jain said.

Jain said both countries have already agreed on the terms of reference for the negotiating committee, laying groundwork for formal discussions.

However, he said the launch of bilateral negotiations will have to take into consideration the completion of negotiations on the ASEAN-India Trade in Goods Agreement (AITIGA), which is expected next year.

Trade Undersecretary Allan Gepty, who participated as a panelist at the business forum, confirmed that the Philippine government is targeting the start of PTA negotiations with India next year.

“Our target is that we start the negotiations next year. And, of course, we’re trying to rush it out so that we can conclude the same as soon as possible. And that’s our goalpost,” Gepty said.

A Philippines-India PTA could potentially establish preferential market access for selected goods and strengthen trade and investment links between the two economies. The scope, tariff commitments and other provisions, however, will depend on the outcome of formal negotiations.

Both countries are expected to continue consultations as they prepare for the planned talks while taking into account developments in the broader ASEAN-India trade framework.

NPO NEWS TEAM | PNA-PR

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