PRAGUE: President Ferdinand Marcos Jr. on Friday sought the support of the Czech Republic on the resumption of negotiations for the proposed free trade agreement (FTA) between the Philippines and the European Union (EU).

In his speech during the Czech-Philippine Business Forum here, the President said the proposed free trade agreement would bolster mutual economic development.

ALL BUSINESS President Ferdinand Marcos Jr. meets with Czech leaders at the Philippine-Czech Republic Business Forum at Czernin Palace, Prague, Czech Republic, on the sidelines of his state visit on Friday, March 15, 2024. During the event, President Marcos and Czech Republic President Petr Pavel witnessed the signing of memoranda of understanding (MoU) in the semiconductor, IT-BPM sectors, among others. PHOTO BY YUMMIE DINGDING/ PPA POOL

"We believe that the resumption of these negotiations will be a big step in furthering our trade relations, with the end view to establish a stable, predictable, and enabling business environment that promotes inclusive and sustainable growth and development," he said.

Foreign Affairs Secretary Enrique Manalo earlier said the Philippines is hoping to start free trade talks with the EU.

The negotiations started in 2015, with the last round held in Cebu City in 2017. Since then, negotiations have been put on hold.

The Philippines currently enjoys trade preferences under the EU's Generalises Scheme of Preferences + or GSP+, a special incentive arrangement for sustainable development and good governance that grants duty-free access to the EU market for two-thirds of tariff lines.

Marcos said the country is committed to becoming "a reliable partner for the Czech Republic in implementing its Indo-Pacific Strategy.

During the event, Marcos and Czech Republic President Petr Pavel also witnessed the signing of three business agreements, which the Filipino leader said "will mark a significant milestone in our journey towards mutual prosperity."

"These agreements are not just documents. They are a commitment to unlocking the vast potential that lies in our partnership, especially in the semiconductor and IT-BPM sectors.

These strengths that are complementary in these different industries stand to benefit from this collaboration. We paved the way for innovation and for development," Marcos said.

The business forum was organized by the Philippine Embassy in Prague and the Philippine Trade and Investment Center in Berlin, with the cooperation of the Czech Republic's Ministry of Foreign Affairs, the Confederation of Industry, and the Chamber of Commerce.

Marcos then invited Czech companies to invest in the processing of the country's critical minerals to mitigate the risks of disruptions in the global supply chain.

"The expertise of the Czech Republic in mineral processing is of particular interest to us.

"Hence, we invite Czech companies to invest in the processing of our critical minerals, offering a robust diversification plan that can mitigate the risks of global supply chain disruptions, as we have seen in the recent years," he said.

Critical minerals include cobalt, copper, lithium, nickel, and rare earths, all playing a crucial role in the production of clean energy technologies, from wind turbines to electric cars.

Over the past 20 years, annual trade in energy-related critical minerals has increased from $53 billion to $378 billion.

In an earlier meeting with Czech Republic Prime Minister Petr Fiala, Marcos invited Czech companies to supply the requirements of the modernization program of Armed Forces of the Philippines (AFP).

The President said the Czech Republic's participation in the AFP's modernization program would not only improve its capacity and capability, but would also strengthen relations between the two countries.

"The Czech Republic has always been active as a source of equipment from the Philippines.

"And so, we come again to the Czech Republic and offer the partnership with the Czech Republic and the Philippines," he said.

Of particular interest to the President is the procurement schedule under the Re-Horizon Phase 3 of the Revised AFP Modernization Program (RAFPMP), and the training of the military force.

Under Re-Horizon 3, the Philippine government will acquire more ships, aircraft and radar systems to beef up its archipelagic defenses.

The Philippines is interested in "technology transfer investments and other innovative arrangements of co-production joint venture," Marcos said.

Fiala said that his country is ready to help the Philippines boost its defensive measures.

On Thursday, Czech President Petr Pavel said his country "has had a long tradition when it comes to the defense industry. We have a lot to offer."

Even before Marcos' visit to Prague, several Czech defense companies were already keen on starting ventures under the RAFPMP.

Last February 6, Czech Ambassador to the Philippines Karel Hejc accompanied a Czech defense delegation in a courtesy call on senior officials of the Department of National Defense led by Senior Undersecretary Irineo Espino.

Diplomatic relations between the Philippines and the Czech Republic were established on Oct. 5, 1973.

Marcos also welcomed the more enhanced people-to-people relationship with the Central European country, as well as its decision to allow more Filipino workers to join its labor market.

"The increase in the quota gives us an opportunity in the Philippines to have another avenue for our overseas workers, who have traditionally become rather a very large part of our economy and a very large part of the contributions that they make to our economy," Marcos told Fiala.

"And it's not only in terms of the remittances that they send back, the money they send back to their families. It is the good performance that they have shown in their host countries. That has been a great advantage to the Philippines; the assimilation of our people to Czech society has become an important and fruitful one," he added.

The President welcomed the Czech Republic's decision to almost double the annual quota for Filipino workers starting this May — from 5,500 to 10,300.

There are 7,000 Filipinos working in that country's processing industry, automotive, repairs and appliances, manufacturing, information technology communications, real estate, health/wellness, and household service work.

Started in 2018, the Czech 's economic migration program allows for the entry and stay of Filipino workers in the country on a year quota: 1,000 Filipino workers per year from 2018; 2,000 per year from 2021; 2,500 per year from November 2022; and 5,500 per year from January 2024.

The President and his delegation are expected to arrive in Manila at 4 p.m. on Saturday.