EU-Philippines trade deal talks reach breakthrough

The European Union and the Philippines said Tuesday they had reached substantial agreement on a free trade agreement, calling it a breakthrough after years of stalled talks.

EU trade chief Maros Sefcovic and Philippine trade secretary Cristina Roque made the joint announcement after a video call. They said the agreement marked a significant milestone and put the deal on a clear path toward formal conclusion in the coming months.

European Commission President Ursula von der Leyen said she looked forward to visiting the Philippines in 2027 to sign the agreement after speaking Monday with President Ferdinand Marcos.

The EU and the Philippines began free trade negotiations in 2016. The talks stalled a year later and resumed in March 2024.

Brussels and Manila agreed to cut tariffs covering more than 97 percent of bilateral trade. The EU said goods trade with the Philippines was worth 17.6 billion euros, or $20.1 billion, last year, while services trade was worth 10.3 billion euros in 2024.

The agreement covers areas including government procurement, digital trade, energy and raw materials. The EU said its main industrial exports to the Philippines include machinery and appliances, transport equipment, medicines and medical appliances, while major agrifood exports include pork, poultry, dairy products and spirits.

Sefcovic said the agreement showed the EU was reinforcing its engagement with the Indo-Pacific. He said EU talks with Thailand were at the most advanced stage among the bloc's negotiations with other countries, and that Brussels was also engaging intensively with Malaysia.

The announcement comes as the EU seeks more trade agreements around the world after US President Donald Trump's tariff increases pushed the bloc to deepen trade ties with other partners.