EU and Philippines Reach Substantial Free Trade Agreement

The European Union and the Philippines reached a substantial agreement on a free-trade deal on September 22, 2026, ending a decade of intermittent negotiations. European Commission President Ursula von der Leyen and Philippine President Ferdinand Marcos Jr. announced the milestone, which will liberalize more than 94 percent of tariff lines covering over 97 percent of bilateral trade.

The agreement expands access to digital trade, intellectual property, and government procurement. It focuses on sectors including semiconductors, electronics, pharmaceuticals, and agricultural products. EU Trade Commissioner Maroš Šefčovič and Philippine Trade Secretary Cristina Roque have instructed negotiators to finalize technical details in the coming months, with a formal signing expected in 2027 during a visit by von der Leyen to the Philippines.

The deal is a component of a broader EU strategy to reduce economic reliance on China and the United States, particularly following tariff pressures from the Trump administration. The Philippines is the third ASEAN member to secure such a bilateral deal with the EU, following Singapore and Vietnam. In 2025, the EU served as the fourth-largest trading partner for the Philippines, with bilateral goods trade totaling 17.6 billion euros, while total annual trade in goods and services reached nearly 30 billion euros.