The Philippines and the European Union concluded the third round of negotiations for a Free Trade Agreement (FTA) on 20 June in Brussels, Belgium, marking what officials described as a significant step in deepening bilateral trade and investment ties.

The talks were led by Department of Trade and Industry (DTI) Undersecretary Allan B. Gepty and Director Dora Correia from the European Commission’s Directorate General for Trade and Economic Security.

Negotiators from both sides held five days of discussions across 19 areas, including Trade in Goods, Rules of Origin, Services and Investment, Capital Movements, Customs and Trade Facilitation, Intellectual Property, Competition Policy, and Trade and Sustainable Development.

New chapters under negotiation include Government Procurement, Digital Trade, Energy and Raw Materials, and Sustainable Food Systems. Officials said the PH-EU FTA is the most comprehensive trade agreement the Philippines has pursued to date.

“The meaningful progress achieved in the negotiations thus far is a testament to the constructive spirit and commitment of both negotiating teams to finding mutually agreeable provisions. We will continue with this approach and look forward to commencing market access negotiations by the next round,” said Undersecretary Gepty. “We remain steadfast in our common vision to conclude this FTA expeditiously, particularly in light of the evolving global trade landscape.”

Both delegations reaffirmed their commitment to finalizing a modern and comprehensive agreement that delivers tangible benefits to businesses, consumers, and stakeholders in both economies.

On the sidelines of the talks, the chief negotiators met with BusinessEurope, an industry organization representing 42 national business federations from 36 countries. The meeting, led by BusinessEurope Deputy Director General Luisa Santos, included members from the spirits, chemicals, defense, and services sectors.

In the Philippines, the DTI coordinates FTA-related consultations through its “One Country, One Voice” platform. Participating agencies also hold their own consultations relevant to their assigned negotiating areas.

In 2024, total trade between the Philippines and the EU reached $15.5 billion, making the EU the country’s fifth-largest trading partner. Philippine exports to the EU totaled $8.1 billion, while imports reached $7.5 billion. The Philippines’ utilization of the EU’s Generalized Scheme of Preferences Plus (GSP+) stood at a record 80.3% last year.

Officials said the PH-EU FTA aligns with the 2023–2028 Philippine Development Plan and aims to build a more stable and predictable trading environment, while enhancing benefits under the GSP+ scheme.

The next round of negotiations is scheduled to take place in the Philippines in October 2025.