The EU and the Philippines have reached ‘substantial agreement’ in negotiations for a Free Trade Agreement, looking to deepen economic ties between the EU and another strategic, fast-growing partner in South-east Asia.
Maros Šefčovič, the EU’s Trade Commissioner, and Maria Cristina Aldeguer-Roque, Philippine Secretary of Trade and Industry, announced the substantial conclusion following a video call, putting the deal on a clear path towards its final conclusion in the coming months.
The Commission says the agreement will unlock stronger trade and investment flows, by improving conditions for exporters, service suppliers and investors on both sides – reinforcing the EU’s strategic engagement with a like-minded partner in the Indo-Pacific region.
“Our FTA does not just remove barriers to trade and investment”, he said, “it builds a modern, forward-looking partnership between the EU and the Philippines, one that will open new opportunities for our exporters and investors, strengthen our supply chains and deepen bilateral economic ties for years to come.”
Bilateral trade between the EU and the Philippines is thought to have the potential to grow well beyond current levels – totalling €17.6 billion in goods (2025) and €10.3 billion in services (2024).
Mutual benefits will stem from:
- Elimination of tariffs on both sides and improved market access on both sides. With 113 million people, the Philippines represents a major market for EU exporters. The FTA will liberalise over 94% of tariff lines, covering more than 97% of bilateral trade:
- EU industrial exports to the Philippines are led by machinery and appliances, transport equipment, medicines and medical appliances.
- The EU’s key agrifood exports to the Philippines include meat products, such as pork and poultry, as well as dairy products and spirits.
- Clear rules on government procurement, opening the Philippine government procurement market to foreign bidders for the first-time ever;
- Better protection of intellectual property rights, including for a commercially meaningful list of EU Geographical Indications;
- Clear and ambitious rules facilitating digital trade, while guaranteeing data privacy and consumer protection;
- Transparent rules on sanitary and phytosanitary measures and technical barriers to trade, which will facilitate trade and reduce costs for companies, while guaranteeing the respect of the highest standards;
- Ambitious sustainability commitments at the core of the trading relationship, making the respect of human rights and the Paris Agreement essential elements of the Agreement, as well as providing a very ambitious Trade and Sustainable Development chapter; and
- Transparent and ambitious provisions on energy and raw materials, aimed at achieving a level playing field to facilitate sustainable investment, in particular in renewable energy.
The EU executive says the substantial agreement at political level reflects the shared ambition of the European Union and the Philippines to jointly build a modern trade partnership based on fair, clear rules, and shared values.
