MACTAN, CEBU — The Philippines is aiming to sign its free trade agreement with the European Union by the third quarter, with officials positioning the deal as a key pillar of the country’s economic and sustainability agenda amid growing global uncertainty.

Speaking at the ASEAN-EU Sustainability Summit 2026 in Cebu, Department of Finance Secretary Frederick Go said the EU-Philippines Free Trade Agreement is the country’s “most important economic agreement this year.”

“This is a much-awaited milestone that will strengthen trade, unlock new opportunities for exporters, and deepen our economic partnership with the EU,” Go said.

The summit, held on the sidelines of the ASEAN Leaders’ Summit, gathered more than 200 officials, diplomats, and business leaders from ASEAN and Europe to discuss sustainability, energy security, trade, and regional cooperation.

Go said the Philippines and Europe are expanding cooperation beyond traditional trade and investment, with sustainability and climate resilience increasingly shaping economic policy.

“Europe and the Philippines have a stable and evolving partnership, built on trade, investment and development cooperation,” he said.

Negotiations for the FTA resumed in recent years following renewed engagement between Manila and Brussels, with both sides now accelerating talks as geopolitical tensions and supply chain disruptions reshape global trade.

European business leaders said the deal could help attract more investments into renewable energy, digital infrastructure, and supply chain development across the Philippines and Southeast Asia.

“At a time of global uncertainty marked by energy volatility, supply chain disruptions, and rising costs, this Summit could not be more timely,” said Paulo Duarte, president of the European Chamber of Commerce of the Philippines.

He said sustainability is no longer optional for businesses and governments.

“It is central to economic resilience, competitiveness, and long-term growth,” Duarte said.

EU Ambassador to the Philippines Massimo Santoro said stronger alignment between sustainability targets and financing will be critical to turning policies into actual projects.

“Strengthening the link between ambition and financing is essential to turning policy into real, on-the-ground impact,” Santoro said.

Officials also stressed that deeper ASEAN-EU cooperation will be needed to address the ongoing energy crisis, rising costs, and climate-related risks affecting regional economies.

The summit also highlighted concerns over implementation gaps, with speakers repeatedly calling for faster execution of sustainability policies and stronger coordination between governments and the private sector.

Department of Environment and Natural Resources Undersecretary Jonas Leones said governments cannot implement sustainability programs alone.

“We need investors, the private sector, to really implement and move forward,” Leones said.

Business leaders also pushed for stronger regional cooperation on renewable energy, supply chains, circular economy initiatives, and sustainable manufacturing.

The ASEAN-EU Sustainability Summit was organized by the EU-ASEAN Business Council and the European Chamber of Commerce of the Philippines.

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