Key facts
- The EU and the Philippines have reached a political agreement on a free trade deal.
- European Commission President Ursula von der Leyen announced the agreement after a call with Philippine President Ferdinand Marcos Jr.
- Negotiators are continuing to finalize details, with talks on public procurement ongoing.
- The deal is expected to eliminate over 94% of tariffs on both sides.
- Bilateral trade in goods between the EU and the Philippines reached €17.6 billion in 2025.
The European Union and the Philippines have reached a political agreement on a free trade deal, European Commission President Ursula von der Leyen announced after a call with Philippine President Ferdinand Marcos Jr. The announcement marks a milestone in the EU's efforts to diversify its commercial ties amid global trade shifts.
Negotiations for the Free Trade Agreement (FTA) were relaunched in March 2024, following an initial assessment of conditions for resumption after talks were put on hold. The EU aims for a comprehensive and modern FTA that includes ambitious market access for goods, services, and investment, as well as provisions for digital trade, energy, raw materials, and intellectual property protection. The deal also includes robust disciplines on trade and sustainable development, supporting high standards for workers' rights, environmental protection, and climate goals.
While von der Leyen declared a deal, a readout of the call indicated that talks were "about to conclude," suggesting further negotiations are needed, particularly on public procurement. EU Trade Commissioner Maroš Šefčovič and Philippine Minister for Trade and Industry Maria Cristina Aldeguer-Roque stated they had reached "substantial agreement" that would set the deal on a clear path towards formal conclusion in the coming months.
In 2025, bilateral trade in goods between the EU and the Philippines reached €17.6 billion, with the EU running a deficit of €1.4 billion. Total trade in services amounted to €10.3 billion in 2024, with the EU holding a surplus of €0.7 billion. The stock of EU foreign direct investment in the Philippines was €15.4 billion in 2024, while Philippine FDI in the EU was €2.4 billion.