The European Union and the Philippines have reached substantial agreement in negotiations for a Free Trade Agreement (FTA), paving the way for the finalisation of a deal designed to strengthen trade and investment ties between the two sides.
The agreement would liberalise more than 94% of tariff lines, covering over 97% of bilateral trade, while improving market access for exporters, service providers and investors. With a population of 113 million, the Philippines represents a significant market for European companies in Southeast Asia.
EU industrial exports to the Philippines currently include machinery and appliances, transport equipment, medicines and medical devices. Key agrifood exports include pork and poultry, dairy products and spirits.
The agreement would also establish clearer rules on government procurement, improve protection of intellectual property rights, including EU geographical indications, and facilitate digital trade while maintaining data privacy and consumer protection standards.
Additional provisions would address sanitary and phytosanitary measures, technical barriers to trade, sustainability, energy and raw materials, including measures designed to facilitate investment in renewable energy.
EU-Philippines trade in goods reached €17.6 billion in 2025, while trade in services amounted to €10.3 billion in 2024. EU foreign direct investment stock in the Philippines stood at €15.4 billion.
For Portuguese companies, the agreement could create additional opportunities in industrial equipment, transport, pharmaceuticals, medical devices, agrifood, digital services and renewable energy, subject to the final terms and implementation of the agreement.
The EU and the Philippines will now continue negotiations to finalise the technical details and implementation arrangements.
