THE Philippines is poised to reap broader economic benefits as negotiations for a Free Trade Agreement (FTA) with the European Union (EU) continue to gain momentum, with the third round of talks concluding successfully in Brussels, Belgium on June 20, 2025.
The FTA is expected to create a more stable and predictable trade environment between the two economies, deepening access for Philippine exports and investments beyond the current privileges under the EU’s Generalized Scheme of Preferences Plus (GSP+).
In 2024, total trade between the Philippines and the EU reached $15.5 billion, with the EU ranking as the Philippines’ fifth-largest trading partner.
Led by Department of Trade and Industry (DTI) Undersecretary Allan B. Gepty and European Commission Director Dora Correia, negotiators engaged in detailed discussions over five days, covering 19 chapters—including new and advanced topics such as government procurement, digital trade, energy and raw materials, and trade and sustainable development.
“The meaningful progress achieved in the negotiations thus far is a testament to the constructive spirit and commitment of both negotiating teams to finding mutually agreeable provisions. We will continue with this approach and look forward to commencing market access negotiations by the next round,” said Undersecretary Gepty. “We remain steadfast in our common vision to conclude this FTA expeditiously, particularly in light of the evolving global trade landscape.”
In a statement, the PH-EU FTA is considered the most comprehensive trade agreement the Philippines has embarked on to date. Once concluded, it is seen to deliver tangible benefits for businesses, consumers, and stakeholders in both economies, and align with the Philippine Development Plan 2023–2028’s mandate to pursue forward-looking trade strategies.
At the sidelines of the third round, chief negotiators also met with BusinessEurope, a major EU business federation representing 42 national business groups from 36 countries. The meeting, attended by sector representatives from spirits, chemicals, defense, and services, provided a platform to exchange views and align interests on the FTA.
In the Philippines, the DTI conducts nationwide stakeholder consultations through its “One Country One Voice” platform before or after each negotiating round. Lead negotiators from other agencies also hold consultations focused on their specific chapters.
Philippine exports to the EU reached $8.1 billion in 2024, while imports from the bloc were valued at $7.5 billion. The Philippines also achieved a record 80.3 percent utilization rate of the EU GSP+ scheme, underscoring the country’s growing trade engagement with Europe.
The next round of FTA negotiations is scheduled to take place in the Philippines in October 2025. / KOC