{"id":8110,"date":"2026-10-01T13:17:27","date_gmt":"2026-10-01T11:17:27","guid":{"rendered":"https:\/\/nicola-bernard.de\/?p=8110"},"modified":"2026-10-01T13:17:27","modified_gmt":"2026-10-01T11:17:27","slug":"agreement-on-a-trade-deal-between-the-eu-and-the-philippines","status":"publish","type":"post","link":"https:\/\/nicola-bernard.de\/en\/agreement-on-a-trade-deal-between-the-eu-and-the-philippines\/","title":{"rendered":"Agreement on a trade deal between the EU and the Philippines"},"content":{"rendered":"

The European Union and the Philippines<\/strong> have reached a broad political agreement in the negotiations on a free trade agreement. EU Trade Commissioner Maros \u0160ef\u010dovi\u010d and the Philippine Minister of Trade and Industry, Maria Cristina Aldeguer-Roque, announced the agreement in principle on 22 September 2026<\/strong> following a video conference.<\/p>\n

The proposed agreement is intended to facilitate trade in goods and services, promote investment and deepen economic relations between the two sides. However, it has not yet been finalised and is not yet in force. The practical implementation and technical details are to be clarified in the coming months. The European Parliament and the Council<\/strong> must then give their approval.<\/p>\n

No specific details regarding tariff reductions, rules of origin or possible transition periods have been published to date.<\/p>\n

Extensive tariff reductions and improved market access<\/strong><\/h6>\n

The free trade agreement is set to liberalise more than 94 per cent of tariff lines<\/strong>. This corresponds to over 97 per cent of bilateral trade<\/strong> between the EU and the Philippines. This opens up improved access for European exporters to a market with a population of around 113 million.<\/p>\n

The most important industrial goods exported from the EU to the Philippines include machinery and equipment, vehicles, pharmaceuticals and medical devices. Among agricultural and food exports, meat and dairy products, as well as spirits, play a significant role.<\/p>\n

In addition to tariffs, the agreement is also intended to reduce non-tariff trade barriers<\/strong>. More transparent rules are planned for sanitary and phytosanitary measures, as well as for technical barriers to trade. Furthermore, the protection of intellectual property is to be improved. This includes an economically significant list of geographical indications from the EU.<\/p>\n

Further provisions are designed to facilitate digital trade whilst ensuring data protection and consumer protection.<\/p>\n

Implications for German companies<\/strong><\/h6>\n

Within the European Union, Germany is the Philippines\u2019 most important trading and investment partner. In the first half of 2026, German companies increased their exports by 23 per cent<\/strong> compared with the same period the previous year, to 1 billion euros.<\/p>\n

The agreement is particularly relevant for suppliers of machinery<\/strong>, pharmaceuticals<\/strong> and medical technology<\/strong>. These product groups already account for around 40 per cent of German exports to the Philippines. The announced reduction in tariffs and other trade barriers could further improve market conditions for them.<\/p>\n

Trade in goods between the EU and the Philippines totalled 17.6 billion euros in 2025<\/strong>. The volume of trade in services stood at 10.3 billion euros in 2024. In 2025, the EU was the Philippines\u2019 fourth-largest trading partner, accounting for 8.3 per cent of the country\u2019s total trade in goods.<\/p>\n

Public tenders open to foreign bidders for the first time<\/strong><\/h6>\n

The planned free trade agreement is also intended to establish clear rules for the award of public contracts. The Philippines\u2019 public procurement market is to be opened up to foreign bidders for the first time.<\/p>\n

This could open up new business opportunities for European and German companies. As part of the \u2018Build Better More\u2019<\/strong> programme, the Philippine government plans to carry out around 3,000 infrastructure projects<\/strong> with a total value of 225 billion US dollars by 2028.<\/p>\n

These include, amongst other things, new airports and metro lines. The free trade agreement could lower the barriers to European companies participating in these projects.<\/p>\n

Energy, raw materials and more resilient supply chains<\/strong><\/h6>\n

Cooperation in the fields of energy and raw materials<\/strong> is also to be expanded. The proposed regulations are intended to create a level playing field and facilitate sustainable investment, particularly in the field of renewable energy.<\/p>\n

The Philippines aims to reduce its dependence on fossil fuels such as coal and oil. By 2040, the share of renewable energy in electricity generation is set to rise to 50 per cent<\/strong>, doubling the current share.<\/p>\n

For European companies, closer cooperation also offers opportunities to diversify their supply chains further. The Philippines is already a major supplier of semiconductors and electronic components<\/strong>. In 2025, these product groups accounted for just under 3 billion euros, representing a good 60 per cent of German imports from the Philippines.<\/p>\n

Furthermore, the Philippines has significant reserves of nickel and copper<\/strong>. The trade agreement could therefore also help European companies to broaden their sources of supply for critical raw materials.<\/p>\n

Sustainability as an integral part of the agreement<\/strong><\/h6>\n

Sustainability is set to play a central role in future trade relations. The planned agreement contains a comprehensive chapter on trade and sustainable development<\/strong>. Respect for human rights and the Paris Agreement are also set to be key elements.<\/p>\n

Through fair and transparent rules, the EU and the Philippines aim to create a reliable economic framework. The agreement is intended to help both sides diversify their trade relations and build more stable supply chains.<\/p>\n

Negotiations are set to be concluded in the coming months<\/strong><\/h6>\n

The EU and the Philippines began negotiations on a free trade agreement back in 2015. Talks had been suspended since 2017. In March 2024, both sides agreed to resume negotiations on a modern free trade agreement. Six rounds of negotiations have taken place since then.<\/p>\n

The Philippines currently benefits from tariff concessions under the Generalised Scheme of Preferences<\/strong> for developing countries (GSP). Under this scheme, the EU grants duty-free access to the EU market for two-thirds of tariff lines.<\/p>\n

Based on the political agreement that has now been reached, the negotiations are expected to be concluded in the coming months. In particular, the implementation and technical details of the agreement must be finalised. The free trade agreement can only enter into force once this work has been completed and approval has been granted by the European Parliament and the Council.<\/p>\n

 <\/p>\n

Sources: GTAI<\/a> (in German), European Commission<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

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