EU-Philippines trade deal 'breakthrough' unveiled: Marcos, von der Leyen clear path to free trade agreement

Manila: The European Union (EU) and the Philippines have reached a “substantial agreement” on a long-awaited free trade agreement (FTA), officials said Tuesday.

The deal moves the two sides closer to a formal deal aimed at expanding market access, investment and supply-chain links amid growing global trade tensions.

European Commission President Ursula von der Leyen said she spoke with President Ferdinand Marcos Jr. and that they had agreed on an EU-Philippines free trade deal, according to a readout of the call between von der Leyen and Marcos Jr.

Ratification

But officials clarified that the agreement still requires technical and legal finalisation, signature and ratification before any new trade terms can take effect.

Von der Leyen welcomed the outcome and credited the negotiating teams led on the EU side by European Commissioner for Trade and Economic Security Maros Sefcovic and on the Philippine side by Trade Secretary Ma. Cristina Roque.

The breakthrough

In a joint statement, Roque and Sefcovic said the substantial agreement placed the negotiations on a “clear path toward its formal conclusion in the coming months.”

They instructed negotiators to complete the remaining work as soon as possible.

The deal is intended to create new commercial opportunities, support investment and jobs, and deepen cooperation on sustainable development, clean-energy transition and digital trade, the European Commission said.

It also carries strategic weight.

Brussels and Manila said the agreement demonstrates the value of working with like-minded partners to preserve open, fair and predictable trade at a time of tariffs, supply-chain disruption and geopolitical competition.

What the deal means

The proposed FTA would be the EU’s third bilateral trade agreement with an ASEAN member, after agreements with Singapore and Vietnam, according to the European Chamber of Commerce of the Philippines, Philippine media reported.

For the Philippines, an agreement with the world’s large integrated single market could help attract European investment, diversify export markets and support participation in higher-value supply chains.

For the EU, the deal strengthens its commercial and geopolitical presence in Southeast Asia, a region central to trade routes, electronics manufacturing and strategic competition.

Officials have not yet released the final text or detailed tariff schedules stating specific duty cuts, product quotas, investment protections or new market-access rights.

From 2017 freeze to 2027 target

The breakthrough follows years of interrupted negotiations.

2015: The EU and Philippines begin negotiations for a bilateral FTA.

2017: Negotiations are suspended.

July 2023: Von der Leyen visits Manila. She and Marcos agree to relaunch FTA negotiations.March 2024Formal negotiations resume after a seven-year pause.

May 2026: The sixth negotiating round is held, covering market access, services, investment and government procurement.

Sept. 22, 2026: The two sides announce a substantial agreement and order technical and legal work to be completed.

2027: Von der Leyen says she plans to return to the Philippines to sign the FTA, subject to completion of negotiations and approval procedures.

The timing is significant because the Philippines’ current EU Generalised Scheme of Preferences Plus (GSP+) arrangement faces a 2027 deadline.

GSP+ grants preferential tariff treatment to certain Philippine exports in exchange for commitments linked to human rights, labour, environmental protection and good governance.

Von der Leyen congratulated Marcos on the Philippines’ ASEAN chairmanship and said the deal sends a signal ahead of the 50th anniversary of EU-ASEAN relations next year.

She also reaffirmed the EU’s support for the Philippines amid what the European Commission described as "aggressive maritime claims".

The statement did not name China, but the reference comes as Manila faces continuing tensions in the South China Sea.

The linkage of trade and maritime security reflects a broader shift in EU policy: Brussels is seeking not only commercial access to Southeast Asia but stronger ties with partners that share its interest in rules-based navigation, diversified supply chains and reduced economic coercion.

What's next

• Negotiators will finalise the remaining technical provisions, legal text and annexes.

• The European Commission (EC) and Philippine government will publish or brief stakeholders on the final agreement’s terms.

• Both sides must complete their respective internal approval and ratification processes.

• Businesses will need to review rules of origin, tariff schedules, product standards, services rules and investment provisions once released.

• Von der Leyen is expected to return to the Philippines in 2027 for a possible signing ceremony.

• The agreement will not change tariffs or commercial rules until it has been signed, ratified and entered into force.

For now, the September 22 announcement is a major political and negotiating milestone — not the final legal implementation of an FTA. If completed, it would mark one of the Philippines’ most consequential trade agreements in years and a significant expansion of the EU’s economic footprint in ASEAN.