Philippines, EU reach substantial agreement on landmark free trade deal

ASM, Philippine Canadian Inquirer
September 23, 2026

Photo courtesy: Delegation of the European Union to the Philippines

MANILA, Philippines — The Philippines and the European Union have reached a substantial agreement on a long-awaited free trade agreement, bringing nearly decade-old negotiations closer to formal conclusion.

Trade Secretary Ma. Cristina Aldeguer-Roque and European Commissioner for Trade and Economic Security Maroš Šefčovič announced the breakthrough on Sept. 22 following a video call, according to the European Commission. Negotiating teams have been instructed to finalize the remaining details of the agreement as soon as possible.

The development came after President Ferdinand Marcos Jr. and European Commission President Ursula von der Leyen spoke by phone to mark what the Philippine government described as the “substantial conclusion” of negotiations.

Both leaders said the proposed agreement is expected to create new opportunities for businesses and investments, generate jobs and support more diversified supply chains. Marcos said the deal should benefit Filipino farmers, manufacturers, consumers and micro, small and medium enterprises.

The European Commission said the proposed FTA would liberalize more than 94 percent of tariff lines covering over 97 percent of bilateral trade. It would also establish provisions covering government procurement, intellectual property, digital trade, sanitary and phytosanitary measures, sustainability, energy and raw materials.

The agreement is expected to improve market access for exporters, service providers and investors from both sides.

“The agreement also sends a clear signal of reinforced engagement between the EU and the Philippines,” Roque and Šefčovič said in their joint statement, linking the deal to both sides’ interest in an open, inclusive and rules-based international order.

EU-Philippines trade in goods reached €17.6 billion in 2025, while trade in services totaled €10.3 billion in 2024. The EU was the Philippines’ fourth-largest trading partner last year, accounting for 8.3 percent of the country’s total trade in goods.

The Philippines has also benefited from the EU’s Generalised Scheme of Preferences Plus, or GSP+, since 2014. The arrangement removes tariffs on two-thirds of product categories, subject to the Philippines’ implementation of international conventions covering human and labor rights, environmental protection and good governance.

Negotiations for an EU-Philippines FTA were first launched in December 2015. Talks stalled after a second negotiating round in 2017 before both sides resumed negotiations in March 2024.

Despite the breakthrough, the FTA has not yet been formally completed. The European Commission said both sides must still finalize technical details and determine implementation arrangements based on the substantial agreement reached at the political level.

The agreement will then move toward formal conclusion and eventual signing at a later date.