EU and Philippines reach substantial free trade agreement

The European Union and the Philippines announced a substantial agreement on a free trade deal on September 22, 2026, following a video call between EU Trade Commissioner Maroš Šefčovič and Philippine Trade Secretary Cristina Roque, with European Commission President Ursula von der Leyen also confirming the breakthrough after speaking with Philippine President Ferdinand Marcos Jr. Under the agreement, tariffs on more than 94 percent of tariff lines are expected to be eliminated, covering over 97 percent of bilateral trade. EU officials said the deal should increase EU exports, with the farming sector likely to be the main beneficiary. EU-Philippines goods trade was worth 17.6 billion in 2025, while services trade reached 10.3 billion in 2024, and EU foreign direct investment stock in the Philippines stood at 15.4 billion. The agreement would give EU businesses access to a market of about 113 million consumers and cover EU exports of machinery, medicines, medical appliances, and agricultural products including meat, pork, poultry, and spirits. Philippine exports are dominated by semiconductors, integrated circuits, and industrial machinery.