Substantial agreement on EU-Philippines trade deal

This article is published in association with United Nations.

Today, the EU and the Philippines reached substantial agreement in their negotiations for a Free Trade Agreement (FTA), envisaged to deepen economic ties between the EU and another strategic, fast-growing partner in Southeast Asia. 

Maros Šefčovič, Commissioner for Trade and Economic Security, and Maria Cristina Aldeguer-Roque Philippine, Secretary of Trade and Industry, announced the substantial conclusion following their video call, putting the deal on a clear path towards its final conclusion in the coming months.

This 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.

At a time when both sides are working to diversify their economic relationships, the agreement will also help build trusted partnerships, stable and predictable trade rules, as well as resilient supply chains.

A mutually beneficial deal

Bilateral trade between the EU and the Philippines has potential to grow well beyond current levels – totalling €17.6 billion in goods (2025) and €10.3 billion in services (2024).

The 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.
  • Our 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.

Today’s 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.

Next steps

The EU and the Philippines will now finalise the negotiations on the basis of the substantial agreement reached today, including determining its implementation and finalising technical details.

Background

The EU and the Philippines first launched negotiations for an FTA in 2015. After an interruption, the negotiations resumed in March 2024, aiming for a modern, ambitious and balanced free trade agreement with sustainability at its core.  

In 2025, the EU was the Philippines’ fourth largest trading partner, accounting for 8.3% of the country’s total trade in goods. Bilateral trade in goods amounted to EUR 17.6 billion in 2025, while trade in services reached 10.3 billion in 2024. The stock of EU foreign direct investment (FDI) in the Philippines amounted to €15.4 billion and the stock of Philippine FDI in the EU was €2.4 billion.

For more information

EU-Philippines trade relations

EU and the Philippines FTA negotiations

Readout of the call between President von der Leyen and President Marcos of the Philippines

Joint press statement Commissioner Šefčovič and Secretary Roque