BRUSSELS: The European Union and the Philippines have reached a substantial agreement on a free trade deal, officials from both sides announced Tuesday, putting years of negotiations on a clear path toward formal conclusion in the coming months.
European Commission President Ursula von der Leyen said in a post on X that she had spoken by phone with Philippine President Ferdinand Marcos Jr. and that the two had just agreed on the trade pact.
European Commissioner for Trade and Economic Security Maroš Šefčovič and Philippine Trade Secretary Ma. Cristina Roque said in a joint statement that the substantial agreement puts negotiations on track for formal completion in the coming months. The two officials said they had instructed their respective negotiating teams to finalize the agreement as soon as possible.
Both sides said the deal will deepen bilateral trade and investment ties, making them more diversified and resilient amid global economic volatility. The free trade agreement is expected to open new opportunities for businesses, including micro, small and medium enterprises, as well as farmers, manufacturers and consumers, while providing fairer rules and greater predictability for companies operating between the two markets.
According to a European Commission readout of the call, the announcement came as the two sides moved to conclude talks that have been underway for years, with von der Leyen and Marcos discussing the state of negotiations directly before announcing the breakthrough.
The Philippines is set to become only the third member of the Association of Southeast Asian Nations to conclude a bilateral free trade agreement with the EU, following Singapore and Vietnam, according to BusinessWorld. The European Chamber of Commerce of the Philippines welcomed the conclusion of negotiations, calling it a milestone for business ties between Manila and the bloc.
While Tuesday's announcement marks a substantive breakthrough, the agreement has not yet been formally signed or ratified. Formal signing is expected in 2027, when von der Leyen is anticipated to travel to the Philippines, according to reporting on the announcement. Until the agreement is formally concluded and ratified, existing trade rules between the EU and the Philippines remain in effect.
The prospective deal follows a broader push by the EU to expand its network of trade agreements in Asia amid global economic uncertainty, including its free trade agreement with India signed in January and its earlier pacts with Singapore and Vietnam.
