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[BUSINESS] · Philippines, EU · 49 sources

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EU and Philippines reach substantial agreement on Free Trade Deal

The European Union and the Philippines have reached a substantial agreement on a Free Trade Agreement (FTA), marking a major step in the EU’s strategy to diversify economic partnerships within the Indo-Pacific region. The deal aims to deepen economic ties and strengthen supply chain resilience amid global geopolitical tensions.

The agreement is set to liberalize over 94 percent of tariff lines, covering more than 97 percent of bilateral trade. Key sectors expected to benefit include EU exports of machinery, medical devices, pharmaceuticals, and agricultural products such as pork, poultry, and dairy. In return, the Philippines will provide increased access for its exports of semiconductors, integrated circuits, and industrial machinery.

Beyond tariff reductions, the pact includes provisions for digital trade, intellectual property protection, and the opening of the Philippine government procurement market to foreign bidders. It also incorporates commitments to sustainable development, human rights, and the Paris Agreement. The agreement is intended to facilitate EU investment in Philippine critical raw materials, such as nickel and cobalt, which are essential for the green energy transition. Formal signing of the agreement is anticipated to occur in 2027, following ratification by both parties.

Entities

European Commission · European Union · Ferdinand Marcos Jr. · Ma. Cristina A. Roque · Maros Šefčovič · Philippines · Ursula von der Leyen

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