The Philippines and the European Union (EU) are on track to sign their free trade agreement (FTA) in 2027, now that negotiators have settled the bulk of the deal after nearly a decade of on-and-off talks.
“It is essentially concluded,” EU Ambassador Massimo Santoro told reporters at the ASEAN-EU Business Summit.
Santoro said a few leftover provisions still need to be worked out, and the text must pass a legal review before the agreement can be formally launched. Once signed, the pact will go to the Philippine government and the European Parliament for ratification.
Both sides want to move fast. Santoro said the goal is to have the FTA in effect before the EU’s Generalized Scheme of Preferences Plus (GSP+) ends in late 2027.
“We wish to be quick in putting this into force,” he said.
European Commission President Ursula von der Leyen announced the breakthrough on X after a phone call with President Marcos.
“We just agreed on a EU-Philippine trade deal!” she wrote. “This comes just three years after my visit to Manila to relaunch the negotiations.”
Marcos, in a statement released hours after the call, said the government would make sure the gains reach ordinary Filipinos.
“This is an important milestone in our strong partnership with the European Union and our shared commitment to open and fair trade. The agreement will bring more opportunities for business and investment, create more jobs and support stronger and more diversified supply chains,” Marcos said.
“We will work to ensure that these opportunities reach our Filipino farmers, manufacturers, consumers and MSMEs (micro, small and medium enterprises), while opening new possibilities for the Philippines in AI (artificial intelligence), digital technologies and other important sectors,” he said.
Trade Secretary Cristina Roque and European Commissioner for Trade and Economic Security Maros Sefcovic confirmed the development in a joint statement. The two officials said the agreement should give small businesses, farmers, manufacturers and consumers in both markets new openings, draw more investment and add jobs. They said it would also back common goals on sustainable development and the move toward cleaner and more digital economies, while offering stable, fair trade rules and more varied supply chains amid geopolitical and economic uncertainty.
Talks first opened in 2015 but stalled after two rounds, when the EU raised concerns over the Duterte administration’s drug war. Negotiations restarted in 2024.
The EU was the Philippines’ fourth-largest trading partner in 2025, with goods trade between the two reaching 17.6 billion euros ($20.2 billion).
Local business groups welcomed the news and called on legislators to act quickly on ratification.
“We strongly urge legislators and political leaders from both the Philippines and the EU to demonstrate swift, decisive commitment to the ratification process,” said European Chamber of Commerce of the Philippines president Diana Edralin, who described the pact as a stable base for trade and development. “Ensuring an expedited legislative approval in both the Philippine Congress and the European Parliament will allow our business communities, workforce and consumers to realize the full economic dividends of this historic pact without delay.”
German-Philippine Chamber of Commerce and Industry president Christian Scheld said German companies are ready to convert the agreement into investments and jobs in the country.
“GPCCI looks forward on its official documentation and ratification well ahead of the expiry of GSP+ in 2027, so that Philippine exporters face no gap in market access,” Scheld said.
Philippine Exporters Confederation Inc. president Sergio Ortiz-Luis Jr. said exporters stand to gain from the deal.
“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.
Philippine Chamber of Commerce and Industry president Ferdinand Ferrer said the agreement ties the country more closely to the global economy.
“The business community must now position itself to fully maximize the opportunities that this comprehensive agreement will bring. This FTA has the potential to unlock new growth areas for Philippine enterprises, particularly small and medium-sized enterprises seeking to expand their presence in international markets,” Ferrer said.
For Federation of Philippine Industries chair Elizabeth Lee, the pact could turn the Philippines into a reliable sourcing and production base for European firms.
“The real prize is not just market access. It is attracting the investments that create factories, transfer technology and generate quality jobs for Filipinos,” Lee said.
The EU already has FTAs with Singapore and Vietnam and finished negotiations with Indonesia in September 2025. EU-ASEAN Business Council chair Jens Ruebbert said a region-wide agreement would benefit companies on both sides.
“We strongly believe a regional deal would provide a competitive edge for European and Southeast Asian companies alike, bringing trade and investment to a level that reflects the scale and strategic importance of the ASEAN-EU relationship,” Ruebbert said.
GSP+ currently lets 6,274 Philippine products enter the EU without duties, but Santoro said the new agreement reaches much further.
“The FTA is much more encompassing than the GSP+,” he said.
