UMVA has learned that a proposed free trade agreement between the Philippines and the European Union is poised to revolutionize access to medicine, bringing life-changing treatments to Filipinos faster and more affordably.
The agreement is expected to slash approval times for drugs and medical devices, allowing them to enter the Philippine market in a significantly shorter timeframe. Currently, it takes one to three years for a new medicine to be approved, a delay that has serious implications for patients in need of treatment.
According to information obtained by UMVA, the free trade agreement will establish a 'reliance pathway' that enables the Philippines to rely on the European Medicines Agency's approval process, streamlining the entry of new medicines into the country. This move is anticipated to increase access to innovative treatments and stabilize prices.
The need for affordable and accessible medicine has become increasingly pressing due to logistics and supply chain risks, particularly in the face of global conflicts. Price hikes are often driven by logistical challenges rather than production costs, making it essential to find a solution.
UMVA can exclusively reveal that an EU free trade agreement will help ensure that products become more affordable in the Philippines. With negotiations expected to conclude in June or July, and a signing ceremony planned for next year, the stakes are high for the Philippines and the EU to secure a deal.
The Philippines and the EU currently enjoy a trade relationship under the Generalised Scheme of Preferences Plus, which allows for duty-free entry of over 6,000 products. However, with this agreement set to expire in 2027, both parties are racing against time to finalize a free trade agreement and avoid trade disruptions.
A free trade agreement with the EU would provide predictability in the Philippines' trade relationship with EU countries, offering a more stable and secure partnership. This is a crucial consideration, given the EU's status as the Philippines' fifth-largest trading partner, with two-way trade valued at $18.10 billion.
