The European Commission confirmed on Monday that EU Trade Commissioner Maroš Šefčovič will travel to Manila next week to finalise a comprehensive trade agreement with the Philippines. The visit marks the culmination of six rounds of negotiations aimed at lowering barriers across a wide range of sectors, from industrial goods to agriculture.
The deal is a cornerstone of Brussels' strategy to deepen economic ties with the Asia-Pacific region, a priority that has gained urgency since the return of US President Donald Trump and the resulting turbulence in global trade. With Washington imposing tariffs on multiple partners, the EU has been actively seeking new markets for its exports.
Negotiations have progressed steadily, with the most recent round held in May. The final sticking point has been access to public procurement—the Philippines has historically kept its government contracts closed to foreign bidders. However, the European Commission told members of the European Parliament earlier this month that the rest of the agreement is ready, and the aim is to lift trade barriers in most sectors.
An EU official also informed MEPs that sanitary and phytosanitary rules for food products are “ambitious,” and that automotive standards would improve access for European manufacturers. The official emphasised that the EU and the Philippines are “complementary” in both industrial goods and agriculture, suggesting a mutually beneficial arrangement.
Why the Philippines matters
For Manila, this agreement is particularly significant. The country has faced headwinds in 2025, including US tariffs and the economic fallout from the war in Iran, which has driven up energy prices. Yet the Philippines also achieved a notable milestone in August when the World Bank upgraded it to “upper-middle-income country” status, describing it as “one of the most dynamic economies in the East Asia Pacific region since 2010.”
The numbers underline the potential. Bilateral trade in goods between the EU and the Philippines reached €16.8 billion in 2024. That year, the EU was the Philippines' fourth-largest trading partner, accounting for 7% of its total goods trade, while the Philippines ranked as the EU's 39th-largest partner, representing just 0.3% of EU trade.
The agreement would not only open new opportunities for European exporters but also signal a shift in the Philippines' economic policy, which has traditionally been protective of its public procurement market. For Brussels, it is another step in a broader effort to diversify trade relationships beyond traditional partners, a strategy that has also seen the EU pursue deals with other Asian nations.
However, the path to finalisation has not been without friction. France has recently threatened to block an EU plan for English-only trade deals, a move that could complicate future negotiations. Yet for the Philippines, the deal appears on track, with Šefčovič's visit expected to put the finishing touches on the agreement.
As the global trade order continues to shift, the EU-Philippines deal stands as a testament to Brussels' determination to forge new alliances. For European businesses, it opens a gateway to a fast-growing market; for the Philippines, it offers a chance to modernise its economy and attract foreign investment.
