The European Union and the Philippines are expediting efforts to formalize a comprehensive free trade agreement, with officials signaling a goal to close major portions of the deal’s text within the first half of 2026.
EU Ambassador to the Philippines Massimo Santoro said in a recent forum that negotiating teams have made significant progress in text-based discussions.
The momentum follows a partial bilateral trade of €8.3 billion in the first half of 2025, up 3 percent from the same period in 2024.
Despite a volatile global economic landscape, the Philippines has maintained a trade surplus with the European bloc.
Santoro attributed this growth trend to the increasing competitiveness of Philippine exports and a robust appetite for Filipino goods in the European market. He said the Philippines stands out in the region due to its strong economic fundamentals, dynamic workforce and strategic location.
He lauded the economic reforms of the administration of President Ferdinand Marcos Jr., saying that efforts to streamline business planning and increase sector participation serve as clear signals that attract European investors.
The resumed negotiations gained fresh momentum in 2024 following directives from Marcos and European Commission President Ursula von der Leyen.
The proposed agreement aims to go beyond traditional tariff reductions by establishing a stable framework addressing digital security and intellectual property to protect the modern tech-driven economy. Othel V. Campos
The deal is expected to open transparent channels for government procurement and create deeper integration into global value chains through enhanced market access for both services and investment.
European firms are increasingly prioritizing the Philippines for high-quality investments that align with global sustainability goals, Santoro said.
These companies are focusing business strategies on renewable energy projects, climate-resilient infrastructure, circular economy solutions and the expansion of digital connectivity.
“Strong economic partnerships are built not only on shared interests but also on shared confidence in the future. The European Union has confidence in the Philippines, and we look forward to unlocking the true potential of our diplomacy through a stable, growth-based framework that fosters a more prosperous and sustainable future for both sides,” Santoro said.
