Hanoi (VNA) - The Philippines and the European Union (EU) on September 22 announced that they reached a breakthrough in long-running negotiations on a free trade agreement (FTA).
In a joint statement, European Commissioner for Trade and Economic Security Maros Sefcovic and Philippine Secretary of Trade and Industry Cristina Roque said the two sides had agreed on most of the FTA’s content, marking significant progress and paving the way for its completion in the coming months.
According to Sefcovic, the agreement, if concluded, would create more stable and diversified supply chains at a time when resilience has become a strategic priority.
Electronics are a key area of bilateral trade, with the EU exporting aircraft, pork and pharmaceuticals, while importing semiconductors, microchips and industrial machinery manufactured in the Philippines.
Meanwhile, the European Commission said the agreement is expected to boost trade and investment flows by improving conditions for exporters, service providers and investors of both sides. It would also seek to eliminate trade tariffs and improve market access for the EU and the Philippines.
The EU and the Philippines began FTA negotiations in 2016, but the process stalled a year later and resumed only in March 2024.
In 2025, the EU was the Philippines’ fourth-largest trading partner, with annual two-way trade reaching nearly 30 billion EUR (35 billion USD).
If formally concluded, the agreement would be the latest bilateral deal secured by the EU as it seeks to diversify its economy amid growing tensions with traditional trading partners. The Philippines would also become the third ASEAN member, after Vietnam and Singapore, to sign an FTA with the EU.
The EC is also negotiating FTAs with Thailand, Indonesia and Malaysia, while working towards an EU-ASEAN FTA in the longer term.
According to Sefcovic, the agreement with the Philippines sends a clear signal that the EU is reinforcing its engagement with the Indo-Pacific./.
