By Justine Irish D. Tabile, Reporter
THE Philippines and the European Union (EU) made “remarkable progress” in the text-based negotiations for a free trade agreement (FTA) during the fourth round of talks, the Department of Trade and Industry (DTI) said.
“We just finished our fourth round of Philippines-EU FTA negotiations, and I can say it was a productive one. We made remarkable progress in the text-based negotiations,” DTI Undersecretary Allan B. Gepty said in a Viber message.
“On track tayo [sa target timeline], and I would say we are making very good progress sa text-based negotiations,” he added.
In the negotiations held in Cebu City from Oct. 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, initial provisions, and institutional provisions.
The Philippines and the EU are aiming to conclude FTA negotiations as early as next year, ahead of the expiration of the EU’s Generalized Scheme of Preferences Plus (GSP+) in 2027.
The trading scheme provides duty-free access to over 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 also started market access negotiations for goods, services, and investments, including discussions on modalities for government procurement,” said Mr. Gepty.
“Our objective remains clear, that is, to promote not only trade and investments but also inclusivity, sustainability, good governance, and resilience as we advance our Philippines-EU economic relations,” he added.
According to the trade official, the Philippines and the EU are expected to hold the next round of negotiations by January or February next year.
Bianca Pearl R. Sykimte, director of the DTI-Export Marketing Bureau, said that the early conclusion of the FTA is vital for Filipino exporters, especially amid the scheduled expiration of the current EU GSP+.
“We trust that our Philippine negotiators and EU counterparts are working hard to conclude an agreement at the earliest possible time. Exporters need stability in the trading environment, and the FTA will deliver that,” she said in a Viber message.
Ms. Sykimte said that the EU accounts for approximately 11% of total Philippine exports, such as agriculture and food products, garments, electronics, and industrial goods.
“[The EU GSP] expiry, before the Philippines-EU FTA takes effect, threatens to raise tariffs and reduce competitiveness for Philippine exporters,” she said.
“An FTA will secure long-term, predictable access to the EU, protect existing gains, and unlock new opportunities for high-value sectors,” she added.
John Paolo R. Rivera, a senior research fellow at the Philippine Institute for Development Studies, said that the early conclusion of the FTA is crucial, as the country is already seeing higher US tariffs and anticipating the expiry of GSP+ benefits.
“Concluding the FTA by mid-2026 would not only provide continuity in preferential market access but also diversify our trade base amid rising protectionism,” he said in a Viber message.
“For an import-dependent economy like the Philippines, securing stable and rules-based trade frameworks is vital to boost investor confidence, improve competitiveness, and safeguard long-term growth amid global uncertainty,” he added.
Meanwhile, German-Philippine Chamber of Commerce and Industry, Inc. President Marie Antoniette E. Mariano 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 a key framework to expand trade and investment opportunities,” she said in a Viber message.
“We remain optimistic that the ongoing dialogues will bring both economies closer toward a more dynamic and sustainable partnership,” she added.
However, Foreign Buyers Association of the Philippines President Robert M. Young said that the government should conduct proper consultation with industry representatives and make sure that the FTA rules and regulations are fair to both parties.
He said that some exporters, particularly those involved in the export of garments, cannot enjoy the benefits of the EU GSP+ due to restrictions.
“The garments need to be of Philippine origin. So, the fabrics that we will use need to be Philippine-made. But we do not have a fabric factory. We are just importing them,” he said in a phone interview.
“The government should make sure that the exporters will really benefit from the FTA… the FTA should address the rules of origin, the environmental concerns and regulations, and the nontariff barriers,” he added.
Former DTI Undersecretary Rafaelita M. Aldaba said that the timely conclusion of the FTA is important given the risks from US reciprocal tariffs and the looming expiry of the EU GSP+.
“The progress in the Philippines-EU FTA negotiations is significant. It presents a potential structural opportunity for the Philippines to deepen market access, anchor investment and upgrade exports,” she said in a Viber message.
“Given the risks from US reciprocal tariffs and the looming expiry or change in preferential regimes, timing matters. Hence, concluding the FTA sooner will enhance our strategic trade resilience and development trajectory,” she added.
