Date: September 22, 2026
Reporter: Emilly Jordan
The European Union and the Philippines have agreed on a free trade deal, European Commission President Ursula von der Leyen said on Tuesday, marking a major step in efforts to deepen economic ties between the European bloc and one of Southeast Asia’s fastest-growing economies.
Von der Leyen said she had spoken with Philippine President Ferdinand Marcos Jr. and that the two sides had just reached agreement on the free trade deal. Reuters reported that the announcement came after several rounds of negotiations aimed at reducing trade barriers and expanding economic cooperation.
The agreement follows the resumption of EU-Philippines free trade negotiations in 2024 after talks that had been suspended following earlier rounds in 2016 and 2017. Six rounds of negotiations have taken place since talks resumed, with the latest round held in May 2026.
The negotiations have covered a broad range of issues related to trade and investment, including market access and government procurement. The European Commission has described the proposed agreement as a comprehensive and modern framework intended to strengthen economic relations between the two sides.
The Philippines currently benefits from preferential access to the European market under the EU's Generalised Scheme of Preferences Plus, or GSP+, which provides reduced or zero tariffs on eligible products while requiring the country to meet commitments related to human rights, labour rights, environmental protection and good governance.
A full free trade agreement would provide a broader framework for EU-Philippines commercial relations beyond the existing preferential system. The final legal text and implementation arrangements will determine the specific tariff reductions, market-access commitments and other obligations for businesses on both sides.
Trade between the EU and the Philippines has expanded in recent years. EU data show that bilateral trade in goods reached approximately €17.6 billion in 2025, while trade in services amounted to about €10.3 billion in 2024. The EU was the Philippines' fourth-largest trading partner in goods in 2025, accounting for 8.3% of the country's total goods trade.
The agreement also comes as the EU seeks to strengthen and diversify its economic relationships in the Asia-Pacific region. European officials have increasingly emphasized closer trade ties with countries in the region as global supply chains and international trade relationships undergo significant changes.
For the Philippines, closer access to the EU market could provide additional opportunities for exporters and investors, while European companies could gain improved access to the Philippine market. The Philippines is the second-largest market in the Association of Southeast Asian Nations by population and is one of the region's major economies.
The announcement by von der Leyen and Marcos represents the political conclusion of the negotiations, but the agreement will still have to go through the required legal and ratification procedures before it can fully enter into force. The European Commission has said the complete text of the final agreement will be made public ahead of its signature and ratification.
The EU-Philippines agreement is expected to strengthen commercial links between Europe and Southeast Asia while providing a new framework for trade, investment and economic cooperation between the two sides.