The third round of negotiations for a Free Trade Agreement (FTA) between the Philippines and the European Union (EU) successfully concluded in Brussels, Belgium on 20 June 2025, marking a significant step forward in deepening bilateral trade and investment ties. The negotiations were led by DTI Undersecretary Allan B. Gepty and Director Dora Correia from the European Commission’s Directorate General for Trade and Economic Security.
For five days, negotiators from both sides engaged in discussions across 19 key areas. These included Trade in Goods, Rules of Origin, Services and Investment, Capital Movements, Payments, Transfers and 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.
The PH-EU FTA is most comprehensive trade agreement the Philippines has pursued to date. New areas being negotiated 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. We will continue with this approach and look forward to commencing market access negotiations by the next round,” said Undersecretary Gepty. “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 not only reflects modern trade priorities but also delivers tangible benefits for businesses, consumers, and stakeholders in both the Philippines and the EU.
At the sidelines of the third round, the Chief Negotiators met with BusinessEurope, a business organization representing 42 national business federations from 36 countries in the EU, European Economic Area and EU’s neighbourhood. Led by Deputy Director General Luisa Santos and including members from sectors like spirits, chemicals, defense, and services, the meeting facilitated the exchange of views and interests in the FTA.
In the Philippines, the DTI convenes consultations on the FTA through its “One Country One Voice” platform, held before or after each negotiating round. Lead negotiators from other Philippine government agencies also conduct their own consultations, focusing on their respective chapters.
In 2024, total trade between the Philippines and the EU reached USD 15.5 billion. The EU stood as the Philippines’ fifth-largest trading partner, representing 7.7% of the Philippines’ total trade. Philippine exports to the EU amounted to $8.1 billion, while imports from the EU were $7.5 billion. Moreover, the country’s utilization of the EU’s Generalized Scheme of Preferences Plus reached a record rate of 80.3% in 2024.
The PH-EU FTA is an important element of the Philippine trade agenda and is aligned with the Philippine Development Plan’s (2023-2028) directive to advance purposive, assertive, and forward-looking free trade agreement strategies. As one of the country’s top trading partners, the FTA with the EU is expected to establish a more predictable and stable trading environment, further enhancing the benefits under the EU GSP+ scheme.
