THE European Union and the Philippines have reached a substantial agreement on a free trade agreement (FTA), marking a significant milestone that puts the deal on a clear path toward formal conclusion in the coming months.
EU Trade and Economic Security Commissioner Maroš Šefčovič and Philippine Trade and Industry Secretary Ma. Cristina Roque announced the breakthrough following a video call on Tuesday, Sept. 22, 2026.
Both sides said the agreement will deepen bilateral trade and investment ties and make them more diversified and resilient.
The FTA is expected to create new opportunities for businesses, including micro, small and medium enterprises (MSMEs), as well as farmers, manufacturers and consumers in both markets.
It is also expected to strengthen and diversify supply chains and provide fair rules and greater predictability for businesses, amid a volatile global economic environment.
The agreement comes three years after European Commission President Ursula von der Leyen visited Manila in 2023, when she and President Ferdinand R. Marcos Jr. agreed to relaunch FTA negotiations.
Von der Leyen welcomed the positive outcome in a call with Marcos on Monday, Sept. 21, and thanked the negotiating teams for their work, led on the EU side by Šefčovič.
The agreement should bring tangible benefits, including new opportunities for businesses, more investment and more jobs, according to the readout of the call.
It will also support shared priorities on sustainable development and the clean and digital transitions.
The two leaders underscored the importance of working with like-minded partners to ensure open, fair and predictable trade amid a challenging geopolitical and geoeconomic environment.
Von der Leyen also congratulated Marcos on the Philippines’ chairmanship of Asean and reaffirmed the EU’s commitment to concluding similar ambitious free trade agreements across the region.
She said the Philippines-EU agreement is an important signal ahead of next year’s 50th anniversary of EU-Asean relations. Von der Leyen also said she looks forward to returning to the Philippines in 2027 to sign the FTA.
Welcome development
Philippine exporters welcomed the development, with Philippine Exporters Confederation Inc. president Sergio R. Ortiz-Luis, Jr. calling the agreement a significant milestone that could expand opportunities for Philippine exporters.
“This is very welcome news for Philippine exporters. The EU is a major and high-value market, and an FTA can give our exporters greater market access, more predictable trading conditions, and a stronger platform for expanding Philippine products and services in Europe,” Ortiz-Luis said.
He said the next priority should be ensuring that the final agreement delivers meaningful and commercially competitive market access, particularly for Philippine products with strong export potential.
“We hope the final agreement will translate into real opportunities on the ground, especially for our MSMEs. We need to help Philippine businesses meet EU standards, strengthen their capacity, and connect them with European buyers and value chains. The agreement should not only open the door — it should enable more Filipino enterprises to walk through it,” he said.
Ortiz-Luis also welcomed the move toward formal conclusion of the negotiations, saying a deeper trade relationship with the EU would support the Philippines’ efforts to diversify markets and strengthen its position in global value chains amid continuing trade uncertainties.
The EU and Philippine negotiating teams have been instructed to finalize the agreement as soon as possible.
Both sides described the FTA as a forward-looking partnership built on trust and mutual benefit. / KOC