EU and Philippines reach ‘substantial agreement’ on free-trade deal

THE European Union and the Philippines have reached a “substantial agreement” on a free trade deal, the European Commission said on Tuesday (Sep 22).

The agreement is expected to increase trade and investment flows by improving conditions for exporters, service suppliers and investors on both sides, it added. Negotiations will be finalised to determine the implementation of the trade deal and to finalise technical details.

The agreement is set to eliminate trade tariffs and improve market access on both sides. It would also open the Philippine government procurement market to foreign bidders.

In 2025, the EU was the Philippines’ fourth-largest trading partner, accounting for 8.3 per cent of the country’s total trade in goods. Bilateral trade in goods amounted to 17.6 billion euros (US$20.2 billion) in 2025, while trade in services reached 10.3 billion euros in 2024. REUTERS