Introduction

In an increasingly interdependent international scenario, where geopolitical dynamics intertwine with trade and investment flows, economic diplomacy emerges as an essential tool for international projection. More than just a complement to traditional diplomacy, this branch now plays a strategic role in promoting economic development, creating opportunities for cooperation, and strengthening bilateral relations between states.

The relationship between Portugal and the Philippines has been intensifying, driven by mutual interest in strengthening commercial, cultural, and institutional ties. In this context, economic diplomacy plays a central role in building sustainable bridges between the two countries, creating value for businesses, investors, and citizens.

What is Economic Diplomacy?

Economic diplomacy can be defined as the set of actions developed by a state—through diplomatic missions, government entities, and trade support organizations—with the goal of promoting its economic interests abroad.

This activity encompasses areas such as:

• Promotion of exports and internationalization of businesses;
• Attraction of foreign direct investment (FDI);
• Stimulation of technological and scientific cooperation;
• Promotion of tourism and academic mobility;
• Defense of business interests in multilateral negotiations.

It is important to note that economic diplomacy is not limited to the actions of embassies or consulates. It also involves bilateral chambers of commerce, promotion agencies (such as AICEP), business associations, and representatives from the private sector, creating a collaborative network with a direct impact on international relations.

Benefits of Economic Diplomacy for Countries

The effective implementation of economic diplomacy offers multiple benefits for both the sending and receiving countries:

• Increase in exports: through market openings, institutional support, and participation in international trade fairs;
• Attraction of foreign investment: essential for innovation, technology transfer, and job creation;
• Boosting of strategic sectors: such as renewable energy, sustainable agriculture, health, and the digital economy;
• Improvement of external image: through the projection of the country brand, promoting trust and international recognition;
• Strengthening multilateral cooperation: enabling synergies between universities, research centers, local governments, and companies.

Portugal-Philippines Relations: A Case Study

Although geographically distant, Portugal and the Philippines share significant points of convergence: a colonial heritage with Iberian roots, open economies, and a growing political will for closer ties.

The recent strengthening of bilateral relations has materialized in:

• Institutional visits and diplomatic missions;
• Joint participation in multilateral events (e.g., ASEAN-EU Business Summit);
• Academic and cultural cooperation initiatives;
• Growth in bilateral trade, although modest, with potential for expansion.

For instance, Portuguese exports to the Philippines, although still limited, have shown sustained growth in machinery, industrial components, and pharmaceutical products (Source: INE).

On the other hand, interest from Filipino companies in Portugal as an entry point into the European market has been increasing, particularly in the fields of tourism, ICT, and renewable energy.

The Role of CCIPF in Economic Diplomacy

In this ecosystem, the Portugal-Philippines Chamber of Commerce and Industry (CCIPF) plays an increasingly important role as an institutional bridge between the two countries. As an independent and non-profit entity, CCIPF acts as a privileged interlocutor between the private sector and public administrations, promoting:

• Bilateral business missions;
• Networking events and thematic conferences;
• Support for the internationalization of Portuguese companies in the Philippines and vice versa;
• Coordination with organizations such as AICEP, the Philippine DTI, the Embassy of the Philippines in Lisbon, and the Embassy of Portugal in Manila.

Additionally, CCIPF provides strategic advice to its members, identifies business opportunities, and promotes the image of Portuguese and Filipino companies in international forums.

Challenges and Future Opportunities

Despite the evident potential, economic diplomacy between Portugal and the Philippines faces some structural challenges:

• Language and cultural barriers;
• Regulatory and bureaucratic differences;
• Geographical distance and complex international logistics;
• Mutual market unfamiliarity.

However, these obstacles can be overcome through:

• Increased investment in awareness and business training initiatives;
• Strengthening Portugal’s presence in the ASEAN region;
• Development of sectoral bilateral agreements, particularly in fiscal, scientific, and mobility areas.

The future of Portugal-Philippines relations lies in identifying priority sectors such as green energy, sustainable tourism, creative industries, value-added agribusiness, and emerging technologies.

Conclusion

Economic diplomacy between Portugal and the Philippines, although still in its early stages, holds considerable promise. Strengthening this partnership requires constant cooperation between government agencies, businesses, and relevant institutions, creating win-win scenarios for both sides.

The role of institutions such as the Portugal-Philippines Chamber of Commerce and Industry (CCIPF) is crucial to the development of this relationship. By promoting business opportunities, facilitating dialogue, and supporting the internationalization of companies, it contributes to the growth of bilateral economic exchanges. However, overcoming existing challenges and identifying new opportunities will be key to ensuring that economic diplomacy fulfills its potential in the years to come.