EU and Philippines Reach Substantial Agreement on Free Trade Deal
European Commissioner Šefčovič announced a substantial breakthrough in the EU-Philippines free trade agreement talks. Both sides agreed to liberalise over 94% of tariff lines, covering more than 97% of goods. The EU already exports over EUR 8 billion a year to the Philippines in machinery, transport equipment, medicines and agricultural goods; bilateral goods trade is nearly EUR 18 billion and services trade over EUR 10 billion. Negotiating teams are tasked with formally concluding the agreement in the coming months.
Impact and considerations
Deep tariff cuts would lower trade costs between the EU and the Philippines across machinery, transport equipment, medicines and agricultural goods, and strengthen supply-chain diversification including semiconductors, directly affecting European firms with sourcing, manufacturing or sales in the Philippines and busin…
Key points
- The EU and the Philippines reached a substantial agreement on their free trade deal, welcomed by both presidents in a call.
- Both sides agreed to liberalise over 94% of tariff lines, covering more than 97% of goods.
- The EU already exports over EUR 8 billion a year to the Philippines in machinery, transport equipment, medicines, pork, poultry and dairy.
- Bilateral goods trade is already nearly EUR 18 billion, with services trade above EUR 10 billion.
- The EU runs an agricultural surplus with the Philippines, exporting EUR 2 billion against EUR 1.4 billion in imports.
- The deal is framed as strengthening supply-chain resilience and diversification, including semiconductors, and unlocking new investment potential such as renewable energy.
- Negotiating teams are tasked with formally concluding the agreement in the coming months.
- The EU says that after Indonesia and now the Philippines, it is making strides with Thailand and engaging intensively with Malaysia.
Sources and time
- Primary source
- European Commission
- Other sources
- 0
- First source publication
- 22 Sept 2026, 15:13
- Page published
- 22 Sept 2026, 18:01
- Last updated
- 22 Sept 2026, 15:13
- Original links
- European Commission Press Corner：Press remarks by Commissioner Šefčovič on the EU–Philippines trade relations (opens in a new tab)Primary source · en · Published 22 Sept 2026, 15:13