EU and Philippines reach substantial trade agreement

The European Union and the Philippines have reached a substantial agreement on a Free Trade Agreement (FTA), following a virtual meeting between EU Commissioner for Trade and Economic Security Maros Sefcovic and Philippine Secretary of Trade and Industry Maria Cristina Aldeguer-Roque on September 22, 2026. The framework aims to eliminate over 94% of tariff lines, covering more than 97% of bilateral trade. The initiative follows a 2023 agreement between European Commission President Ursula von der Leyen and Philippine President Ferdinand Marcos Jr. to restart negotiations.

This deal is designed to diversify supply chains and expand market access for both regions. In 2025, trade in goods between the two parties reached 17.6 billion euros, with services trade hitting 10.3 billion euros in 2024. The agreement is expected to benefit sectors including machinery, industrial equipment, transportation, and agri-food products like meat and dairy.

While the core agreement is set, finalization remains pending as negotiators address remaining details. European Commission trade spokesperson Olof Gill indicated that the goal is to conclude the legal text within the coming weeks to maintain momentum, though a formal timeline for the final signature extends into the coming months.