EU and Philippines reach free-trade agreement covering more than 97% of trade

Deal covers procurement, IP, digital trade and sustainability

The European Commission and the Philippines agreed to a trade deal that would touch on government procurement contracts, intellectual property, digital trade and sustainability provisions, according to a Commission statement. The Brussels-Manila agreement aims to deliver new opportunities for businesses — especially small and medium firms — along with more jobs and stronger supply chains “at a time when resilience has become a strategic priority,” the Commission said.

EU trade chief Maros Sefcovic told reporters Tuesday that both sides had agreed to liberalize more than 94% of tariff lines covering more than 97% of trade. “This is very good news, and a major opening for EU exporters who already sell over 8 billion euros [$9.17 billion] a year” to the Philippines in goods from machinery and medicines to pork and dairy, Sefcovic said.

In 2025, the EU was the Philippines’ fourth-largest trading partner, accounting for 8.3% of the country’s total trade in goods. The Philippines’ top exports to the bloc include electronic products and agricultural goods.

The deal is part of a broader push by the European Commission to strengthen trade ties with countries beyond the United States and China. Earlier this year, the EU concluded a landmark agreement with India, and negotiations are progressing with Malaysia and Thailand. An India-New Zealand FTA is due to come into force next month.

Canada is pursuing a parallel pivot toward Asia. Earlier this week, Canadian Minister of International Trade Maninder Sidhu met with his Indian counterpart in Mumbai to discuss strengthening trade and investment ties after “a successful round of negotiations with India,” Sidhu said in a post on X. Sidhu said he was now traveling to the Philippines for the Asean Economic Ministers’ Meeting to advance talks on free-trade agreements with both the Philippines and the Association of Southeast Asian Nations, an 11-member bloc.

In 2025, Canada’s bilateral merchandise trade with Asean rose 24% to 52.4 billion Canadian dollars, equivalent to about US$37.33 billion.

Trade uncertainty has been a persistent theme in international relations this year following a U.S. Supreme Court ruling that struck down many of the tariffs the Trump administration had levied on economies last year over trade imbalances. Since then, the U.S. government has continued pursuing tariffs via other routes.

The reporting was by Amanda Lee in Singapore and Edith Hancock in Brussels for The Wall Street Journal.