PH-EU free trade talks gain strong momentum

The third round of negotiations for a free trade agreement between the Philippines and the European Union concluded successfully in Brussels, Belgium, on June 20, 2025 — marking a key step toward strengthening bilateral trade and investment ties.

The talks were led by Department of Trade and Industry Undersecretary Allan B. Gepty and Director Dora Correia from the European Commission’s Directorate-General for Trade and Economic Security.

Over five days, negotiators discussed 19 key areas including trade in goods, rules of origin, services and investment, capital movements, payments and transfers, temporary safeguard measures, competition policy, customs and trade facilitation, digital trade, energy and raw materials, government procurement, intellectual property (including geographical indications), mutual administrative assistance, sanitary and phytosanitary measures, state-owned enterprises, sustainable food systems, technical barriers to trade, trade and sustainable development, trade remedies, and legal and institutional matters.

The PH-EU FTA is the most comprehensive trade agreement the Philippines has pursued to date.

New areas under negotiation include government procurement, digital trade, energy and raw materials, and trade and sustainable development.

“The meaningful progress achieved in the negotiations thus far is a testament to the constructive spirit and commitment of both negotiating teams to finding mutually agreeable provisions,” Gepty said. “We will continue with this approach and look forward to commencing market access negotiations by the next round.”

He added, “We remain steadfast in our common vision to conclude this FTA expeditiously, particularly in light of the evolving global trade landscape.”

Both sides reaffirmed their commitment to crafting a comprehensive agreement that reflects modern trade priorities and delivers tangible benefits for businesses, consumers, and stakeholders in the Philippines and the EU.

On the sidelines of the third round, chief negotiators met with BusinessEurope, an organization representing 42 national business federations across 36 countries in the EU, European Economic Area, and EU neighborhood.

Led by Deputy Director General Luisa Santos, the meeting included representatives from key sectors such as spirits, chemicals, defense, and services, facilitating an exchange of views and interests on the FTA.

In the Philippines, the DTI holds consultations on the FTA through its “One Country, One Voice” platform before or after each negotiating round.

Lead negotiators from other government agencies also conduct consultations specific to their assigned chapters.

In 2024, total trade between the Philippines and the EU reached USD15.5 billion.

The EU was the Philippines’ fifth-largest trading partner, accounting for 7.7% of the country’s total trade.

Philippine exports to the EU amounted to USD8.1 billion, while imports reached USD7.5 billion.

Utilization of the EU’s Generalized Scheme of Preferences Plus by the Philippines hit a record 80.3% in 2024.

The PH-EU FTA is a strategic component of the Philippine trade agenda and aligns with the Philippine Development Plan 2023–2028, which calls for purposive, assertive, and forward-looking free trade strategies.

As one of the Philippines’ top trading partners, the EU is expected to help create a more predictable and stable trade environment through the FTA — expanding gains under the GSP+ scheme.

The next round of FTA negotiations is scheduled to take place in the Philippines in October 2025.