The upcoming resumption of free trade agreement (FTA) negotiations between the Philippines and the European Union has transitioned from a mere economic goal to a “strategic imperative.”
EU Ambassador to Manila Massimo Santoro highlighted that escalating global instability—ranging from Middle East-driven fuel hikes to the aggressive tariff policies of U.S. President Donald Trump—has underscored the need for stable alliances.
During a recent press briefing, Santoro noted that these external pressures have forced both regions to seek out more dependable economic ties.
“I think these external challenges also somehow brought us to reflect a bit more on the importance of having a reliable, predictable partners,” he stated.
The economic stakes remain high, with the EU currently serving as the Philippines’ fourth-largest trading partner. In the first half of 2025 alone, bilateral trade in goods climbed to approximately €9 billion (₱640 billion), marking a 3% year-on-year growth fueled by the exchange of agricultural products and electronics.
While formal talks originally stalled in 2015 due to human rights friction during the Duterte administration, the process saw a significant revival in 2024.
The sixth round of negotiations is scheduled to take place in Manila from May 18 to 22. Both parties are aiming to finalize the deal before the end of the year.
Beyond standard market access, the FTA is expected to bolster critical sectors like energy and agriculture.
Santoro specifically pointed to the supply chain for essential farming inputs as a shared vulnerability.
“Think about fertilizers. We focus on fuel related issues, but fertilizers are another fundamental component where we risk to suffer, both in the Philippines and European Union,” he explained.
The Ambassador also emphasized that attracting high-quality, long-term investment requires a commitment to transparency and the rule of law.
He argued that a resilient legal framework is the only way to ensure stability for investors over several decades.
“It is obvious that investors want market access. It is obvious that they want, that corruption is not there,” Santoro remarked.
The proposed FTA is designed to succeed the current Generalized Scheme of Preferences Plus (GSP+), which allows the Philippines to export over 6,000 products to the EU at zero tariffs.
With the GSP+ set to expire in December 2027, the FTA provides a permanent solution for Filipino exporters.
“FTA means basically that the products that are produced here, goods, services, in the Philippines go to Europe, European Union, without tariff. So, meaning that the Filipino products become highly more competitive…” Santoro said.
As the EU continues to expand its footprint in Southeast Asia—with existing deals in Singapore and Vietnam and ongoing talks in Indonesia and Thailand—Santoro expressed optimism about the Philippines’ proactive trade stance.
“The more we liberalize, the better… We get jobs, we give the investors the capacity, the possibility to come here, to invest. So, I only see positive from this FTA.”