MANILA - The European Union could slap trade restrictions on the Philippines, unless the government addresses human rights concerns over its war on drugs, an analyst said Monday.
In In January, the EU said it was reviewing the Philippines' trade perks that were tied to international agreements including human rights.
Four months later, Manila said it would no longer avail of aid from the EU after getting billions of dollars of financial pledges from China.
"If it did, in a worst case scenario for example, much of the trade was cut off from the Philippines, this would be bad for the Philippine economy," John Marrett, an analyst at the Economist Intelligence Unit, told ANC's Market Edge with Cathy Yang.
While China is a new ally, a long-running dispute in the South China sea poses serious challenges, Marrett said.
"But in the longer term, is this going to play out well with the public in the Philippines? Perhaps not if China continues to increasingly assert its authority around what used to be considered and what is still considered by the Philippines and the rest of the world to be Filipino waters," he said.