THE Philippines and the European Union (EU) remain on track to conclude their negotiations on a free trade agreement (FTA) by 2027, Manila’s lead negotiator said on Sunday.
In a text message, Undersecretary Allan Gepty of the Department of Trade and Industry (DTI) said the Philippines and the EU concluded the third round of their negotiations in Brussels, Belgium on June 20 where they made “good progress in the text-based negotiations.” He did not disclose details of the talks.
The DTI said text-based negotiations refer to the detailed legal texts that will form the basis of the agreement. These address areas such as trade in goods, services, investment and beyond.
Gepty said negotiations will advance to the fourth round in Manila in October but both sides agreed to fast tract talks through inter-sessional meetings. DTI said these meetings, which take place between the main negotiation rounds, help sustain progress and tackle specific issues.
“We are on track,” Gepty said when asked if the negotiations can be finished by 2027 as targeted.
”In the meantime, we will just continue with the consultations with stakeholders,” he said, adding that like in any negotiations “there are sensitive issues that need to be addressed.“
He declined to elaborate but underscored that potential gains from this agreement extend far beyond trade and investments as the FTA will also cover elements on sustainability, good governance and cooperation.
“This is a very important FTA for the Philippines not only because EU remains one of our major trade partners but it is also a major source of investment,” Gepty said.
In a statement a day after the opening of the talks on June 18, the Department of Foreign Affairs said EU Chief Negotiator Dora Correia lauded the positive momentum from the earlier negotiation rounds and emphasized the significance of upholding a rules-based global trade order amidst complex geopolitical challenges.
As he called to balance ambition with flexibility, Gepty also enjoined the parties to adopt a positive approach in the spirit of mutual understanding, highlighting the far-reaching benefits should a modern and balanced FTA come to fruition, the DFA said.
Data from the European Union showed that in 2024, the EU was the Philippines’ fourth largest trading partner, accounting for 7 percent of the country’s total trade in goods. The Philippines was the EU’s 40th largest trading partner, accounting for 0.3 percent of the EU’s total trade in goods.
Bilateral trade in goods between the EU and the Philippines amounted to 16.8 billion euros in 2024, with a deficit for the EU of 1.3 billion. The EU’s imports are mainly machinery and appliances, while the EU’s main exports to the Philippines are machinery and appliances; live animals and animal products; chemicals; transport equipment; and foodstuffs, beverages and tobacco.
Total trade in services amounted to 8.5 billion euros in 2023, with a deficit for the EU of 400 million euros.
In 2023, EU foreign direct investment (FDI) in the Philippines amounted to 14.2 billion euros and Philippine FDI in the EU was 2.1 billion euros.
Of the total Philippine exports, 2.2 billion euros entered the EU under the Generalized Scheme of Preferences Plus, which grants the Philippines zero percent tariffs for almost 7,000 EU product lines.
This brings the Philippines’ GSP+ utilization rate to a record high of 80 percent in 2024.
The DFA statement said over the past few years, the EU has been actively pursuing new FTAs and modernizing existing ones with a diverse array of partners, as it seeks to build more productive and resilient trade networks.
Earlier rounds were held in Brussels in October 2024 and in Manila in February 2025. In the Asean region, Singapore and Viet Nam have already concluded FTAs with the EU, while Indonesia, Malaysia and Thailand are in various stages of active negotiations.
