European Commission President Ursula von der Leyen has announced that the European Union and the Philippines have agreed on a free trade deal following talks with Philippine President Ferdinand Marcos Jr. Von der Leyen said: “We have just agreed on a trade deal.” She thanked EU Commissioner for Trade and Economic Security Maroš Šefčovič and recalled that the EU had resumed negotiations with the Philippines three years ago.
Šefčovič and Philippine Trade Minister Cristina Roque said the substantial agreement had placed the negotiations on a clear path towards completion. They instructed negotiators to finalise the agreement as quickly as possible, with the free trade deal expected to be formally concluded in the coming months.
The proposed agreement is intended to deepen trade and investment relations between the EU and the Philippines while making those economic ties broader and more resilient in the face of global fluctuations. According to both sides, the agreement is expected to benefit industry, small and medium-sized businesses, agriculture and consumers.
The deal is also intended to establish fair rules and provide greater predictability for economic activity between the two sides. The negotiations therefore cover not only the expansion of trade but also the wider framework governing bilateral investment and commercial relations.
The agreement follows the resumption of formal negotiations between the EU and the Philippines in March 2024. The talks had originally been launched in 2015 before being put on hold, and the two sides later resumed negotiations after assessing the prospects for a comprehensive and modern free trade agreement.
Six rounds of negotiations had been completed by May 2026, with discussions covering areas intended to strengthen the economic partnership, expand opportunities for businesses and consumers, and support more resilient and diversified supply chains.
The latest agreement comes amid broader changes in international trade policy. The source text links the EU’s efforts to diversify its trading relationships to the trade policies pursued by the United States under President Donald Trump, including the imposition of high tariffs on many countries in April 2025.
Against that background, the EU has sought to reduce its dependence on the United States and develop relationships with additional trading partners. In May 2026, von der Leyen also signed a free trade agreement with Mexico, further expanding the bloc’s network of trade relationships beyond the United States.
For the EU and the Philippines, the immediate objective is now to turn the political agreement into a formally concluded free trade agreement. Negotiators have been instructed to complete that process as quickly as possible, potentially marking a significant step towards deeper and more diversified economic ties between Brussels and Manila.
