Philippines, EU move closer to a free-trade agreement after decade of talks

MANILA, Philippines — The Philippines and the European Union have reached "substantial agreement" on a free-trade pact after a decade of stop-start negotiations, putting the long-sought deal within reach of a possible signing in 2027.

The agreement is not finished, however, and negotiators must settle the remaining details before the pact can move through formal approval, signature and ratification procedures.

Trade Secretary Cristina Roque and EU Commissioner for Trade and Economic Security Maroš Šef?ovi? instructed their negotiating teams to finalize the agreement "as soon as possible."

European Commission President Ursula von der Leyen, following a separate call with President Ferdinand Marcos Jr., said the two sides were "about to conclude talks." She said she looked forward to returning to the Philippines in 2027 to sign the agreement.

The proposed Philippines-EU Free Trade Agreement would cover tariffs on goods as well as services, investment, government procurement, digital trade, intellectual property and other rules governing cross-border business.

Both sides expect the pact to deepen trade and investment ties, diversify supply chains and give companies more predictable access to each other's markets.

The EU is already one of the Philippines' largest economic partners.

Two-way trade in goods reached €17.6 billion in 2025, making the EU the Philippines' fourth-largest trading partner and accounting for 8.3% of its total goods trade, according to European Commission data.

Trade in services totaled €10.3 billion in 2024, while the stock of EU foreign direct investment in the Philippines stood at €15.4 billion.

Philippine exporters already enjoy preferential access to the European market through the EU's Generalised Scheme of Preferences Plus, or GSP+.

The program grants zero tariffs on roughly two-thirds of EU product categories, subject to the Philippines' continued compliance with international conventions on human and labor rights, environmental protection and good governance.

An FTA would eventually replace that unilateral arrangement with a reciprocal framework negotiated by both sides.

For Philippine exporters, the deal could provide more predictable access to a market of more than 400 million consumers and potentially broader tariff and non-tariff advantages than GSP+ offers.

European companies, meanwhile, are seeking greater access to the Philippine market and clearer rules for investment and government procurement.

Roque and Šef?ovi? said the agreement would create opportunities for businesses, including micro, small and medium enterprises, farmers and manufacturers. They also cited more diversified supply chains as a strategic benefit amid geopolitical and economic uncertainty.

The Philippines and the EU launched free-trade negotiations in 2015 but held only two rounds before talks stalled in 2017.

Technical stocktaking—a form of preliminary review—began in 2023, followed by the formal resumption of negotiations in March 2024. Six negotiating rounds were held through May 2026.

Once the remaining issues are settled, the pact must still clear legal and political procedures before it can take effect.

Von der Leyen described the prospective deal as part of the EU's broader push for deeper economic ties with Southeast Asia. The bloc views bilateral agreements with individual ASEAN economies as building blocks toward stronger region-to-region trade ties.

abtestabtest Philippines, Canada on track to conclude FTA talks this year By Louella Desiderio | 5 days ago The Philippines remains on track to conclude negotiations for a free trade agreement (FTA) with Canada this year. Business LPG prices may rise by P10-P25 per kilo in October, retailers say By Renalyn Ramirez | 2 days ago Retailers cite rising global contract prices and shipping costs. Business Experts warn against unsafe weight-loss treatments, urge proper medical care 2 days ago Injectable weight-loss treatments are becoming increasingly popular in the Philippines but health experts are warning Filipinos... Business Short to long-term solutions to blackout By Bienvenido Oplas Jr. | 4 hours ago As we often hear and read now, the most expensive electricity is no electricity – blackout. Appliances and light bulbs are easily damaged, food in the refrigerator are spoiled, small shops with aircon are forced... Business Robinsons Retail opening more stores in ‘ber’ months By Richmond Mercurio | 3 days ago Robinsons Retail Holdings Inc. (RRHI) is speeding up store openings in the remaining months of year as it looks to capitalize... Business Latest More in Business ADB, S&P cut Philippines growth forecasts Trade deficit swells to widest level in H1 Philippines risks losing P603 billion yearly to digital fraud – report Index drops for 4th day, falls below 5,800 abtest Little faces, big smiles By Joe Zaldarriaga | 4 hours ago Last week, I had the pleasure of being among school children whose faces lit up with excitement at the Balik Eskwela drive, one of Meralco’s corporate social responsibility initiatives led by One Meralco ... Business Miners condemn violence against environmentalists By Adrian Kenneth Halili | 4 hours ago The country’s top mining group has denounced any form of violence or killings of individuals that are against mining... Business ICTSI borrows $1 billlion from BDO to fund global expansion plan By Elijah Felice Rosales | 4 hours ago The country’s largest listed firm, International Container Terminal Services Inc. (ICTSI), is set for further expansion... Business JTI fires up P2.1 billion investments into Batangas plant By Aubrey Rose Inosante | 4 hours ago  JTI International Asia Manufacturing Corp.  has invested P2.1 billion more in its manufacturing facility in Batangas, adding a new dry ice expanded tobacco (DIET) plant and doubling the capacity of its... Business Meat imports up 8% in 8 months By Adrian Kenneth Halili | 4 hours ago The country’s meat imports increased by almost eight percent in eight months due to the continued entry of pork and... Business Recommended 14 boto para ma-convict si VP Sara 4 hours ago Mula sa 16-vote threshold, ibinaba ng Senate Impeachment Court sa 14 boto ang bilang para mahatulan si Vice President Sara... BusinessSARA DUTERTE Kampo ni VP Sara, pinag-iisipan pag-akyat sa SC sa voting threshold 4 hours ago Pinag-iisipan ng defense team ni Vice President Sara Duterte ang pag-akyat sa Supreme Court kaugnay ng desisyon ng Senate... BusinessSARA DUTERTE Ang bagong numero para i-convict si Sara September 24, 2026 - 12:00am Lumalabas na mukhang 14 na boto ang bagong voting threshold para sa conviction sa impeachment trial ni Vice President Sara Duterte. BusinessSARA DUTERTE PANOORIN: Senate court, binago ang basehan ng boto para ma-convict si VP Sara 10 hours ago Voting threshold sa VP Sara trial, binago ng Senado BusinessSARA DUTERTE PANOORIN: Camille Villar, napaiyak sa Senado: 'Konting respeto naman' 14 hours ago “Konting respeto naman,” paalala ni Villar sa gitna ng mainit na palitan sa impeachment trial. BusinessSARA DUTERTE next Recommended 14 boto para ma-convict si VP Sara Mula sa 16-vote threshold, ibinaba ng Senate Impeachment Court sa 14 boto ang bilang para mahatulan si Vice President Sara Duterte. 4 hours ago SARA DUTERTE Kampo ni VP Sara, pinag-iisipan pag-akyat sa SC sa voting threshold Pinag-iisipan ng defense team ni Vice President Sara Duterte ang pag-akyat sa Supreme Court kaugnay ng desisyon ng Senate Impeachment Court sa voting threshold para sa conviction. 4 hours ago SARA DUTERTE Ang bagong numero para i-convict si Sara Lumalabas na mukhang 14 na boto ang bagong voting threshold para sa conviction sa impeachment trial ni Vice President Sara Duterte. 4 hours ago SARA DUTERTE PANOORIN: Senate court, binago ang basehan ng boto para ma-convict si VP Sara Voting threshold sa VP Sara trial, binago ng Senado 10 hours ago SARA DUTERTE PANOORIN: Camille Villar, napaiyak sa Senado: 'Konting respeto naman' “Konting respeto naman,” paalala ni Villar sa gitna ng mainit na palitan sa impeachment trial. 14 hours ago SARA DUTERTE OK Are you sure you want to log out? Yes No X Login Philstar.com is one of the most vibrant, opinionated, discerning communities of readers on cyberspace. With your meaningful insights, help shape the stories that can shape the country. Sign up now!