BRUSSELS/MANILA, September 22, 2026: The European Union and the Philippines have reached a substantial agreement in negotiations for a Free Trade Agreement (FTA), marking a major step toward closer economic and trade ties between the two sides.
The agreement was announced following a video call between European Commissioner for Trade and Economic Security Maroš Šefčovič and Philippine Secretary of Trade and Industry Maria Cristina Aldeguer-Roque.
The European Commission said the agreement is expected to improve conditions for exporters, service providers and investors while supporting more diversified and resilient supply chains between the EU and the Philippines.
Tariffs and Market Access
Under the substantial agreement, the proposed FTA would liberalise more than 94% of tariff lines, covering over 97% of bilateral trade. The Philippines, with a population of around 113 million, represents a significant market for European exporters.
Key areas expected to benefit include machinery and appliances, transport equipment, medicines and medical devices, as well as agricultural and food products.
The agreement also includes provisions covering government procurement, intellectual property rights, digital trade, data privacy, consumer protection, sanitary and phytosanitary measures, and technical barriers to trade.
Sustainability and Investment
The proposed trade framework places sustainability at the centre of the relationship, including commitments relating to human rights and the Paris Agreement.
It also contains provisions concerning energy and raw materials, with the aim of facilitating sustainable investment, particularly in renewable energy.
The EU said the agreement would help strengthen economic diversification and create more predictable trading conditions for businesses on both sides.
Bilateral Trade
EU-Philippines trade in goods reached €17.6 billion in 2025, while trade in services totalled €10.3 billion in 2024.
The EU was the Philippines’ fourth-largest trading partner in 2025, accounting for 8.3% of the country’s total goods trade. EU foreign direct investment stock in the Philippines stood at €15.4 billion, while Philippine FDI stock in the EU was €2.4 billion.
Final Negotiations Still Ahead
Despite the substantial agreement, the FTA has not yet reached final legal conclusion. The EU and the Philippines will continue technical work, including finalising implementation arrangements and remaining details.
The negotiations were originally launched in 2015 before being put on hold. They resumed in March 2024 following an agreement to pursue a modern and comprehensive trade deal with sustainability at its core.
The European Commission said the substantial agreement puts the FTA on a clear path toward final conclusion in the coming months.
