Philippines-Germany trade seen to strengthen this year - GPCCI

Trade between the Philippines and Germany is expected to strengthen this year, with major investments seen in both the aviation and renewable energy sectors, a top official of the German-Philippine Chamber of Commerce and Industry (GPCCI) said Wednesday.

According to GPCCI president and chairman of the board, Stefan Schmitz, the trade between the two countries can surpass the $4.7 billion recorded in the past year, which made Germany the biggest trading partner in the European Union.

“I don’t see any reason why we shouldn’t be surpassing it because we’re back after COVID. There were supply chain problems essentially with China, but I do think we should be surpassing them, but that’s just my gut feeling,” he told reporters in Makati City.

Schmitz said among the drivers of growth are the P15-billion expansion of aircraft maintenance, repair, and overhaul (MRO) provider Lufthansa Technik Philippines and the rule allowing foreign entities to own 100% of renewable energy firms in the country.

“We have this game changer in the new law that we can own 100% (in renewable energy). I think Germany’s quite good at this technology, so we expect good business,” he said.

In November 2022, the Department of Energy (DOE) amended a section of the implementing rules and regulations (IRR) of the Renewable Energy (RE) Act of 2008, allowing foreign investors or companies to engage in the exploration, development, and utilization of Philippine renewable energy sources.

The Joint Foreign Chambers of the Philippines (JFC) said last December that it targets $128 billion worth of foreign direct investment into the Philippines by the end of 2030, citing legislative reforms.

Representatives of German firms involved in renewable energy, building, construction, and infrastructure; government and public administration; and education and training will be in the Philippines for the “Mabuhay Germany” fair at the World Trade Center in Pasay City from November 16 to 18. —VBL, GMA Integrated News