Press remarks by Commissioner Šefčovič on the EU–Philippines trade relations

Good morning. Today, we have a breakthrough to announce: a substantial agreement on our Free Trade Agreement with the Philippines, welcomed by both Presidents in their call.

I confirmed this major step myself in a video call with Philippine Secretary of Trade and Industry Cristina Roque – deepening economic ties between the EU and one of the most dynamic economies in Southeast Asia.

We have agreed to liberalise over 94 percent of tariff lines, covering more than 97 percent of goods, on both sides.

That is very good news – and a major opening for EU exporters, who already sell over €8 billion a year to the Philippines in machinery, transport equipment, medicines, pork, poultry, dairy and more.

In practical terms, this agreement delivers:

• Real opportunities for businesses of every size, and for our farmers, in a fast-growing economy of 113 million people. We already run an agricultural surplus with the Philippines – €2 billion in exports against €1.4 billion in imports.
• It also delivers stronger, more diversified supply chains, at a moment when resilience has become a strategic priority – semiconductors being one clear example.
• New investment potential, for instance in renewable energy, where the Philippines is keen to build capacity.

I am convinced that our bilateral trade with the Philippines has room to grow well beyond current levels – already almost €18 billion in goods and over €10 billion in services.

Beyond the economics, there is a bigger picture here, too. This agreement sends a clear signal that the EU is reinforcing its engagement with the Indo-Pacific.

None of this happened by chance. It is the product of good-faith work by negotiating teams on both sides – and I want to thank them for it.

This is the result both the EU and the Philippines can be proud of.

Now the work turns to finishing the job. We have tasked our teams to formally conclude the agreement in the coming months, so businesses and people on both sides can start feeling the benefits as soon as possible.

Already now, we are keen to promote the deal, because Southeast Asia is the region to be in. After Indonesia – and now the Philippines – we are making strides with Thailand and engaging intensively with Malaysia.

Thank you.