Desiccated coconuts: negotiations on Free Trade Agreement between the EU and the Philippines

Talks on the Free Trade Agreement (FTA) between the EU and the Philippines have resumed, while prices for coconut products are showing divergent trends on the European market.

Decision by 2027

The price trend on the coconut market has been very dynamic in recent weeks, as the experts at T.M. Duché report. For example, coconut oil prices in Europe fell by more than USD 50/mt in the first week of October to USD 1,711/mt CIF. Despite this price decline, an upward trend was recorded on the market for palm kernel oil, where prices rose by more than USD 37/mt. In contrast, prices for desiccated coconuts have remained stable for more than two months, thanks in part to constant demand.

T.M. Duché also reports that Philippine market players are currently making great efforts to expand their trade relations with Europe. Recent trade missions were aimed at increasing exports to Belgium and the Netherlands. In addition, talks on a Free Trade Agreement between the Philippines and the EU are being resumed – negotiations are due to be concluded by 2027. Time is of the essence as the country is on the verge of exceeding middle-income status, which could see it excluded from the EU's Generalized System of Preferences Plus (GSP+).

Good news and ongoing problems

Meanwhile, container prices have continued to decline, providing relief to Philippine exporters. According to Drewry's World Container Index, a 40' FCL was recently priced at USD 3,349, compared to USD 5,937 in July. However, the problems caused by Houthi rebels in the Red Sea continue, meaning that delivery times from Asia to Europe are still longer than usual. The end of the strike by US port workers brought relief after an agreement was reached with which all parties involved are satisfied.

Source: Mundus Agri