By Justin Irish D. Tabile, reporter
The Philippines and the European Union (EU) have made “remarkable progress” in text-based negotiations for a free trade agreement (FTA) during the fourth round of talks, the Department of Trade and Industry (DTI) said.
DTI Undersecretary Alan B. “We just concluded the fourth round of Philippines-EU FTA negotiations and I can say that it was fruitful. We made significant progress in the text-based negotiations,” Gepti said in a Viber message.
“Tayo on the track [sa target timeline]And I would say we are making very good progress in text-based negotiations,” he said.
At the talks, held in Cebu City from October 20-24, the parties covered mutual administrative assistance on customs matters, trade and sustainable development, trade in goods, services and investment, digital trade, intellectual property, competition and rules of origin.
Also discussed were government procurement, technical barriers to trade, sanitary and phytosanitary measures, state-owned enterprises, trade remedies, energy and raw materials, dispute settlement, exceptions, preparatory provisions and institutional provisions.
The Philippines and the EU are aiming to conclude FTA negotiations early next year, ahead of the expiry of the EU's Generalized Preferences Plus Scheme (GSP+) in 2027.
The trade scheme provides duty-free access to more than 6,000 Philippine products in the EU market. In 2024, it allowed €2.2 billion worth of Philippine exports to enter the EU duty-free.
“We hope to stabilize the text within the year. We have also launched market access negotiations for goods, services and investments, including discussions on government procurement modalities,” Mr Gepti said.
“Our objective is clear, that is, to promote not only trade and investment but also inclusivity, stability, good governance and resilience as we advance our Philippines-EU economic relations,” he said.
According to the trade official, the next round of talks between the Philippines and the EU is expected to be held by January or February next year.
Bianca Pearl R., Director of DTI-Export Marketing Bureau. Sikimte said the early conclusion of the FTA is important for Filipino exporters, especially amid the scheduled expiration of the current EU GSP+.
“We are confident that our Philippine negotiators and EU counterparts are working hard to conclude an agreement as soon as possible. Exporters need stability in the trading environment, and the FTA will deliver this,” he said in a Viber message.
Ms Siquimate said the EU accounts for about 11% of total Philippine exports, such as agricultural and food products, apparel, electronics and industrial goods.
,[The EU GSP] Termination before the Philippines-EU FTA takes effect threatens to increase tariffs and reduce competitiveness for Philippine exporters,” she said.
“The FTA will secure long-term, predictable access to the EU, protecting existing gains and opening up new opportunities for high-value sectors,” he said.
John Paolo R., a senior research fellow at the Philippine Institute for Development Studies. Rivera said an early conclusion of the FTA is important, as the country is already seeing higher US tariffs and is expecting an expiration of GSP+ benefits.
“Concluding the FTA by mid-2026 will not only provide continuity in preferential market access, but will also diversify our trade base amid rising protectionism,” he said in a Viber message.
“For an import-dependent economy like the Philippines, it is important to secure a stable and rules-based trade framework to enhance investor confidence, improve competitiveness, and secure long-term growth amid global uncertainty,” he said.
Meanwhile, the German-Philippine Chamber of Commerce and Industry, Inc. Marie Antoinette E. Mariano, president of the International Monetary Fund, expressed support for the ongoing negotiations.
“As reflected in the AHK World Business Outlook Spring 2025, German companies in the Philippines continue to view the FTA as an important framework to expand trade and investment opportunities,” he said in a Viber message.
“We are optimistic that the ongoing dialogue will bring both economies closer to a more dynamic and sustainable partnership,” he said.
However, Robert M. Young, president of the Foreign Buyers Association of the Philippines, said the government should conduct proper consultations with industry representatives and ensure that FTA rules and regulations are fair to both parties.
He said some exporters, especially those involved in apparel exports, cannot avail the benefits of EU GSP+ due to restrictions.
“The clothes must be of Philippine origin. So, the clothes we will use must be Philippine-made. But we don't have any fabric factories. We're just importing them,” he said in a phone interview.
“The government must ensure that exporters will truly benefit from the FTA… FTAs must address rules of origin, environmental concerns and regulations, and non-tariff barriers,” he said.
Former DTI Undersecretary Rafaelita M. Aldaba said the timely conclusion of the FTA is critical given the risks of U.S. reciprocating tariffs and the impending expiration of the EU GSP+.
“Progress in the Philippines-EU FTA negotiations is important. It presents a potential structural opportunity for the Philippines to deepen market access, boost investment, and upgrade exports,” he said in a Viber message.
“Given the risks from US reciprocal tariffs and the impending expiration or change in preferential regimes, timing is of the essence. Therefore, early completion of the FTA will enhance our strategic trade flexibility and growth trajectory,” he said.
