Paraguay is seeking closer economic ties with the Philippines, including a potential free trade agreement (FTA), as the South American nation positions itself as a gateway to a regional market of roughly 300 million people, Trade Secretary Cristina Roque said.
Roque noted that the Marcos administration is actively pursuing new trade arrangements this year, with at least four deals targeted for completion.
The prospect of an FTA came up during the recent Manila visit of Paraguayan President Santiago Peña, highlighting mutual interest in expanding trade and investment cooperation.
“They want to strengthen the relationship,” Roque said, noting that Paraguay, despite a population of just 6.5 million, sees itself as a strategic entry point to the wider South American market.
The Philippines, for its part, is open to exploring a trade deal if it delivers economic benefits. “We are open. If it’s beneficial to us, why not? The President is pro-free trade agreement,” Roque added.
Paraguay aims to boost exports of agricultural products to the Philippines, particularly beef, pork, and chicken, while Manila seeks broader access to South American markets as it diversifies its trade partnerships.
Among deals nearing completion is the Philippines-European Union FTA, expected by midyear. A preferential trade agreement with Chile is also on track, reinforcing Manila’s push to strengthen its economic footprint in South America.
The Philippines is also in talks with India on a possible preferential trade agreement following President Ferdinand Marcos Jr.’s recent visit, seeking improved market access for Philippine exports and closer cooperation in pharmaceuticals.
