On Tuesday, 22 September, the EU and the Philippines reached a 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.
EU Commissioner for Trade, Maroš Šefčovič, announced, “I am proud to say we have delivered a substantial agreement that reflect the ambition both sides brought to the table. Our FTA does not just remove barriers to trade and investment – it builds a modern, forward-looking partnership between the EU and the Philippines, one that will open new opportunities for our exporters and investors, strengthen our supply chains and deepen bilateral economic ties for years to come.”
Šefčovič further reiterated the importance of diversification, highlighting the EU’s new trade diversification agenda.
The agreement plans to unlock stronger trade and investment flows, by improving conditions for exporters service suppliers and investors on both sides.
It has been noted that bilateral trade between the EU and the Philippines has potential to grow, totalling €17.6 billion in goods (2025) and #10.3 billion in services (2024).
What is in the agreement?
The mutual benefits will include:
- Elimination of tariffs on both sides and improved market access on both sides.
- 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 a commercially meaningful list of EU Geographical Indicators
- Clear ambitious rules facilitating digital trade, while guaranteeing data privacy and consumer protection
- Transparent rules on sanitary and phytosanitary measures and technical barriers to trade
- Ambitious sustainability commitments at the core of the trading relationship
- Transparent and ambitious provisions on energy and raw materials
What’s next?
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.
