European Union Trade Commissioner Maroš Šefčovič will travel to Manila next week to finalize the trade agreement with the Philippines. This agreement is being finalized as Brussels has increasingly sought to diversify its trade relations in the Asia-Pacific region over the past year. The return of Donald Trump to power in the United States has disrupted the global trade order and pushed the EU towards finding new markets for its exports.
Details of the Trade Agreement
The latest round of trade negotiations between the EU and the Philippines took place in May, with access to public procurement being a key point of discussion. This agreement could represent a significant change for the Philippines, a country that has kept public contracts closed to foreign companies until now. The European Commission informed Members of the European Parliament that the remaining parts of the agreement are ready, aiming to reduce trade barriers between the two sides in most sectors.
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An official from the European Commission also told Members of the European Parliament that health and technical regulations for food products are "sensitive," and automotive standards that improve EU manufacturers' access to the Philippine market have also been considered. This official added that the Philippines and the EU are "complementary" in industrial and agricultural goods.
Economic Impacts of the Agreement on the Philippines
This agreement is particularly significant for Manila, especially after the country has been affected by U.S. tariffs in 2025 and the war in Iran, which have severely impacted energy prices in the country. Additionally, the Philippines achieved the status of "upper-middle-income country" from the World Bank in August, making it a promising market. The World Bank stated that the Philippines has been one of the most dynamic economies in the East Asia and Pacific region since 2010.
In 2024, bilateral trade in goods between the EU and the Philippines reached €16.8 billion. In the same year, the EU was the Philippines' fourth-largest trading partner, accounting for 7% of the country's total goods trade, while the Philippines ranked as the EU's thirty-ninth trading partner, comprising only 0.3% of the EU's total goods trade.
Following the Philippines, the European Commission is seeking to finalize negotiations with Thailand and considers 2026 to be a fruitful year for EU trade agreements in Asia and the Pacific, with agreements already signed with Australia and India.
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