The Philippines and the European Union have reached a “substantial agreement” in negotiations for a long-awaited free trade agreement (FTA), putting the deal on track for formal conclusion in the coming months.
Trade Secretary Ma. Cristina Roque and European Commissioner for Trade and Economic Security Maroš Šefčovič announced the breakthrough in a joint statement on Sept. 22 following a video call. They directed their negotiating teams to complete the remaining work as soon as possible.
The proposed FTA is intended to deepen and diversify trade and investment ties, while improving market access and providing greater predictability for businesses. The Philippine and EU officials said the agreement could open opportunities for micro, small and medium enterprises, farmers and manufacturers, while expanding consumer choices.
The development comes as companies and governments seek more resilient supply chains amid heightened global economic uncertainty. The officials described the pact as a forward-looking partnership based on “trust and mutual benefit,” while emphasizing fair rules and greater economic predictability.
The negotiations resumed in March 2024 after being suspended since 2017. Six rounds have been held since their restart, with the latest taking place in May 2026, according to the European Commission.
The economic relationship provides a significant base for the agreement. The EU was the Philippines’ fourth-largest trading partner in 2025, accounting for 8.3 percent of Philippine goods trade. Bilateral merchandise trade reached EUR17.6 billion, while EU foreign direct investment stock in the Philippines stood at EUR15.4 billion in 2024.
Despite the latest breakthrough, formal conclusion is not the same as entry into force. The final legal text must still be completed before the agreement proceeds toward signature and ratification.
