- The EU and Philippines announced a “substantial agreement” on a free trade agreement on 22 September.
- More than 94% of tariff lines are expected to be eliminated, covering over 97% of existing bilateral trade.
- EU-Philippines goods trade reached €17.6 billion in 2025.
- Negotiators have been instructed to complete the remaining work as soon as possible.
- The agreement still requires legal finalisation and formal approval before taking effect.
Brussels, 22 September, (Brussels Morning Newspaper) – The European Union and the Philippines have reached a substantial agreement on a long-negotiated EU-Philippines trade deal, moving the two sides towards formal conclusion of the pact after years of stop-start negotiations. European Commissioner for Trade and Economic Security Maroš Šefčovič and Philippine Trade and Industry Secretary Ma. Cristina A. Roque announced the breakthrough following a video call on Tuesday.
EU-Philippines trade deal covers most bilateral trade
The proposed free trade agreement is expected to eliminate tariffs on more than 94% of tariff lines on both sides, covering more than 97% of existing trade. EU exporters in sectors including machinery, transport equipment and agricultural products are expected to gain improved market access.
The European Commission says EU-Philippines goods trade was worth €17.6 billion in 2025. Services trade totalled €10.3 billion in 2024, while EU foreign direct investment stock in the Philippines stood at €15.4 billion.
The agreement is also expected to address services, investment, government procurement, digital trade, intellectual property and sustainable development.
EU and Philippine officials confirm progress
Roque and Šefčovič described the development as a significant milestone and said the agreement would deepen bilateral trade and investment ties.
“It also delivers stronger, more diversified supply chains at the moment when resilience has become a strategic priority,” Šefčovič said.
European Commission President Ursula von der Leyen also announced the breakthrough after speaking with Philippine President Ferdinand Marcos Jr.
“We just agreed on a EU-Philippines free trade deal!” von der Leyen said, adding that the development came three years after her Manila visit helped relaunch negotiations.
Trade negotiations resumed in 2024
Negotiations were initially launched in December 2015, but talks stalled after 2017. The EU and Philippines formally resumed negotiations in March 2024, with six negotiating rounds held since the restart.
The Philippines currently benefits from the EU’s GSP+ trade preference programme, which removes tariffs from two-thirds of product categories subject to commitments covering human rights, labour rights, environmental protection and good governance.
Final work remains before approval
Despite Tuesday’s breakthrough, the agreement has not yet entered into force. Roque and Šefčovič instructed negotiating teams to finalise the remaining work “as soon as possible”, with formal conclusion expected in the coming months.
The completed EU-Philippines trade deal will then have to move through the applicable legal, signature and ratification procedures before its provisions can take effect.
