EU and Philippines reach free trade agreement to cut tariffs

The European Union and the Philippines have reached a political agreement on a free trade agreement aimed at strengthening economic ties. The deal is set to eliminate 94% of customs duties and cover more than 97% of bilateral trade.

European Commissioner for Trade Maros Sefcovic described the agreement as a “decisive step and a victory for both parties.” The deal marks a significant expansion of EU trade reach, as the 113 million people in the Philippines push the total population covered by EU free trade agreements past the halfway mark of the global population.

Key provisions of the agreement include opening the Philippine public procurement market to foreign bidders for the first time. It also includes commitments regarding sustainable development, intellectual property protection, and investment in renewable energy. The agreement follows negotiations that began in 2015 and were resumed in March 2024 as the EU seeks to bolster ties in the Indo-Pacific region.