The European Union and the Philippines have reached a substantial agreement on a free trade deal, according to an announcement by the European Commission on Tuesday, Sept. 22. European Commission President Ursula von der Leyen stated in a post on X that she spoke with Philippine President Ferdinand Marcos Jr. to confirm the pact, which is set to eliminate trade tariffs and improve market access on both sides.
Economic Scope and Bilateral Trade Figures
According to the European Commission, the EU ranked as the Philippines’ fourth-largest trading partner in 2025, accounting for 8.3% of the country’s total trade in goods. Bilateral trade in goods reached €17.6 billion (equivalent to $20.17 billion) in 2025, while trade in services hit €10.3 billion in 2024, based on figures provided by Reuters ($1 equals 0.8725 euros). Both sides stated that the agreement will deepen bilateral trade and investment ties, making them more diversified and resilient amid global volatility.
As the Commission pointed out, the pact aims to boost investment and trade by upgrading conditions for service providers, exporters, and investors throughout both areas. According to Cristina Roque, the pact will open new opportunities for businesses including micro-, small, and medium enterprises, as well as farmers, manufacturers, and consumers.
Did You Know? In 2025, bilateral trade in goods between the European Union and the Philippines amounted to €17.6 billion, while trade in services reached €10.3 billion in 2024.
Path to Final Conclusion and Public Procurement
Negotiations will now enter a final phase to determine the implementation of the trade deal and settle technical details. According to a separate statement, EU Trade Commissioner Maroš Šefčovič and Philippine Minister for Trade and Industry Maria Cristina Aldeguer-Roque indicated that the substantial agreement sets the framework on a clear path toward its formal conclusion in the coming months. Most negotiating chapters had closed prior to the announcement, though talks on public procurement continued.
A proposed EU industry law complicates the final stretch by restricting access to public procurement in green and energy-intensive sectors for countries without formal procurement agreements with the bloc. Despite these hurdles, the trade agreement is slated to open the Philippine government procurement market to foreign bidders once fully finalized.
Frequently Asked Questions
What was announced regarding EU-Philippines trade?
The European Commission announced on Tuesday, Sept. 22, that the European Union and the Philippines reached a substantial agreement on a free trade deal aimed at eliminating tariffs and improving market access.
How large is the economic relationship between the two partners?
According to official figures, the EU was the Philippines’ fourth-largest trading partner in 2025, representing 8.3% of the nation’s total trade in goods. Goods trade totaled €17.6 billion in 2025, and services trade reached €10.3 billion in 2024.
What are the next steps for the agreement?
Negotiations will now be finalized to determine implementation and technical details, putting the agreement on a path toward formal conclusion in the coming months.
How might the elimination of trade tariffs and the opening of government procurement markets impact small and medium enterprises in both regions?
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