The European Union is calling for greater flexibility from both sides as negotiations for a free trade agreement (FTA) with the Philippines enter what Brussels describes as the “final stretch,” raising expectations that a long-awaited pact could soon unlock new trade and investment opportunities.
Speaking during her visit to Manila for the ASEAN ministerial meetings, European Union High Representative for Foreign Affairs and Security Policy Kaja Kallas said negotiators have made significant progress but still need to bridge the remaining market access issues.
“There has also been good progress made in negotiations of our free trade agreement. We are now entering the final stretch, and I encourage flexibility to resolve the remaining market access issues,” Kallas said.
Her appeal comes as governments worldwide increasingly pursue trade agreements not only to lower tariffs but also to strengthen supply chains and diversify markets amid persistent geopolitical and economic uncertainty.
Kallas said a successful FTA would create new business opportunities, improve market access, and deliver tangible benefits for both European and Philippine companies and consumers.
The EU is already the Philippines’ fourth-largest trading partner, with annual trade in goods approaching €17 billion. A comprehensive trade agreement is expected to deepen commercial ties further by encouraging investment and expanding access across a broader range of industries.
Beyond trade, Kallas announced that the Philippines and the European Union have agreed to launch an enhanced partnership covering climate action, digital transformation, connectivity, and foreign and security policy.
“The partnership between the European Union and the Philippines has never been stronger,” she said.
The broader message extends beyond economics. As global supply chains continue to shift, both Brussels and Manila are positioning their relationship as one built on resilience, sustainability, and shared rules.
If negotiators can clear the final hurdles, the FTA would mark one of the Philippines’ most significant trade agreements in recent years, opening a new chapter in its economic engagement with Europe while reinforcing the country’s strategy of diversifying export markets and attracting higher-quality investments.
