The Philippines intends to conclude a free trade agreement (FTA) with the European Union (EU) during the next round of negotiations scheduled in Brussels from June 29 to July 3, 2026.
Department of Trade and Industry (DTI) Undersecretary Allan Gepty said after six rounds of talks, both sides expect the upcoming Chief Negotiators’ Round to resolve the remaining technical and substantive issues.
Gepty further stated that the FTA would allow the Philippines preferential access to the EU’s single market of over 450 million people. This would increase exports and attract European investment in key sectors, including renewable energy, infrastructure, advanced manufacturing, and digital innovation.
The EU is the Philippines’ fifth-largest trading partner, with bilateral trade totaling 18.10 billion dollars. The deal should offer an opportunity to expand the EU’s economic presence in Southeast Asia amid rising global competition.
Following the last round of talks in Manila from May 18 to 22, 2026, the DTI reported progress in key areas of the proposed FTA, including trade in goods, services, and investments. Negotiators also covered topics including rules of origin, intellectual property, and digital trade.
The agreement would replace the Generalised Scheme of Preferences Plus (GSP+), which currently allows the Philippines to export over 6,000 products to the EU duty-free.
Business groups support the agreement for its promise to boost trade and investment, but there are concerns that smaller Philippine businesses could struggle to meet the EU’s strict product standards.
Already in February 2026, the civil society group Trade Justice Pilipinas (TJP) called in a statement to halt the FTA negotiations “until there is concrete, verifiable progress on workers’ rights, forced labor enforcement, and a real industrial strategy that creates decent jobs.”
TJP further emphasized that basic labor rights are still regularly violated and the criminalization of human rights defenders and violence against activists persists under the current administration.
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