The European Commission and the Philippines have concluded negotiations on a free trade agreement covering tariffs, market access, public procurement, digital trade, and sustainability, with formal signing expected in 2027.
The European Commission and Philippines government reached an initial free trade agreement on 22 September 2026, ending more than a decade of stalled talks, according to an X post by European Commission President Ursula von der Leyen.
The European Commission President Ursula von der Leyen and Philippine President Ferdinand Marcos Jr. confirmed the breakthrough, with von der Leyen planning to visit Manila in 2027 for the official signing.
Trade Commissioner Maros Sefcovic called the agreement a “victory for both sides” and underscored Brussels’ strategic shift toward the Indo-Pacific region. The pact reflects the EU’s effort to build trading partnerships outside the United States amid rising tariff pressures under the Trump administration.
What the deal covers
The agreement eliminates tariffs on more than 94% of tariff lines, affecting roughly 97% of all bilateral trade between the two nations. Negotiations began in 2015, stalled for years, then resumed in March 2024.
EU machinery, transport equipment, and medicines will benefit from reduced trade barriers. Philippine products, including pork, poultry, dairy, and spirits, gain improved market access. The agreement also opens the Philippines’ public procurement to foreign bidders and strengthens protections for intellectual property and digital trade.
Both sides committed to sustainability measures, including enforcement of human rights standards and adherence to the Paris Agreement climate accord. New provisions address energy investment and raw materials sourcing for renewable energy projects.
The bigger picture
The Philippines agreement follows recent EU trade deals with Indonesia, India, and Australia. Negotiations continue with Thailand and Malaysia. Trade between the EU and the Association of Southeast Asian Nations totalled EUR 274.9 billion in 2025, making ASEAN the bloc’s third-largest trading partner outside Europe, behind only the United States and China.
As of 2025, bilateral trade between the EU and the Philippines reached EUR 17.6 billion in goods and EUR 10.3 billion in services, with accumulated European investment at EUR 15.4 billion.
European business surveys show 78% of executives expect ASEAN trade to grow over the next five years, while 67% of companies plan to relocate supply chains to Southeast Asia ahead of China and South Asia.
