The Philippines has concluded negotiations for a Comprehensive Economic Partnership Agreement (CEPA) with Chile, securing its first free trade agreement with a Latin American country as Manila steps up efforts to diversify export markets and strengthen supply chains.
The Department of Trade and Industry (DTI) said the deal marks a milestone in the country’s trade strategy, expanding its network of economic partnerships beyond its traditional markets in Asia and North America.
Trade Secretary Ma. Cristina A. Roque said the agreement aligns with the Marcos administration’s push to pursue high-quality trade deals that create more opportunities for Filipino businesses, workers, farmers, consumers, and investors.
More than a tariff-cutting pact, the CEPA establishes a modern framework covering investment, the digital economy, labor, the environment, global value chains, and trade and gender, positioning Philippine industries to integrate more deeply into international production networks.
The agreement also carries strategic significance for Philippine manufacturing.
Chile is one of the world’s leading producers of copper, a critical raw material used in semiconductors, electronics, renewable energy technologies, and advanced manufacturing. Improved access to Chilean copper ores and concentrates is expected to strengthen supply chains supporting the country’s growing electronics industry, one of its largest export earners.
The CEPA is likewise expected to improve market access for Philippine exports, particularly electronics, coconut products, and personal care products, while encouraging greater investment, technology transfer, and collaboration in sustainable production.
The timing reflects Manila’s broader strategy of reducing reliance on a handful of export destinations as global trade patterns become increasingly fragmented by geopolitical tensions and supply chain realignments.
Economic ties between the two countries have already been gaining momentum. Chile ranked as the Philippines’ 51st trading partner in 2025, while Philippine imports from Chile nearly tripled to USD290.8 million in 2024 from USD103.4 million a year earlier, driven largely by demand for industrial inputs.
Once implemented, the agreement is expected to deepen bilateral trade, broaden market opportunities for Philippine exporters, and give local manufacturers more reliable access to critical materials needed to support the country’s industrial ambitions.
