EU, Philippines hail 'breakthrough' in trade deal talks

The EU and the Philippines on Tuesday welcomed a "breakthrough" in talks on a long-awaited trade deal, aiming to conclude the accord in the next few months.

It is the latest major trade move by Brussels in a push to diversify its partnerships as Europe faces challenges from the United States and China.

Brussels and Manila began negotiations for a free trade agreement in 2016 but they stalled just a year later, before resuming again in March 2024.

Now, EU trade chief Maros Sefcovic and Philippine trade secretary Cristina Roque said the two parties "reached substantial agreement on a Free Trade Agreement (FTA), marking a significant milestone for both sides".

They made the joint announcement after a video call, saying it set "the deal on a clear path towards its formal conclusion in the coming months."

EU chief Ursula von der Leyen said she looked forward to visiting the Philippines in 2027 to sign the free trade agreement after speaking on Monday with President Ferdinand Marcos.

"This agreement sends a clear signal that the EU is reinforcing its engagement with the Indo-Pacific," Sefcovic told reporters in Brussels.

The tariff blitz unleashed by US President Donald Trump since his return to office in 2025 has jolted the 27-country bloc into cultivating trade ties around the world.

Brussels has since signed deals from South America to Australia, and is seeking more agreements.

Looking ahead, Sefcovic said negotiations with Thailand were at the "most advanced stage" among the EU's talks with other countries.

"We are making strides with Thailand and engaging intensively with Malaysia."

Brussels and the Philippines agreed to cut tariffs covering more than 97 percent of bilateral trade.

The EU said it hoped the deal will help trade expand between the 27-country bloc and the Philippines, which it added was worth 17.6 billion ($20.1 billion) euros in goods last year and 10.3 billion euros in services in 2024.

The EU's most popular industrial exports to the Philippines are machinery and appliances, transport equipment, medicines and medical appliances.

And the most popular agrifood exports to the Philippines include meat products, such as pork and poultry, as well as dairy products and spirits.

Tuesday's agreement covered an array of areas including government procurement, digital trade, and energy and raw materials.

European farmers welcomed Tuesday's announcement.

"We are encouraged by the announced positive outcomes for EU agri-food, including improved market access for key exports such as pork, poultry, dairy and spirits," pan-European agri-business group Copa-Cogeca said on X.