The President of the Federal Republic of Germany, Frank Walter Steinmeier, is backing the completion of the European Union-Philippines Free Trade Agreement (EU-Phl FTA), which would grant Philippine exporters a wider market access to member countries of Europe’s regional bloc.
“The ongoing negotiations on an ambitious free trade agreement between the European Union and the Philippines are so important,” the German leader said during his opening remarks at the Joint Press Conference at Malacañang Palace on Tuesday, as part of his State Visit to the country.
The German President was welcomed by President Ferdinand Marcos Jr., First Lady Liza Araneta-Marcos, and members of the cabinet.
More German investments
in the Philippines
“We hope that the agreement can be concluded speedily and that our economic exchange will continue to intensify so that we will see more European and, in particular, more German investments in the Philippines,” Steinmeier said.
From 29 June to 3 July, the seventh round of talks for the EU-Phl FTA is set in Brussels, the de facto capital of the regional bloc.
The Philippines currently benefits from the EU’s Generalized Scheme of Preferences Plus (EU-GSP+), a special arrangement that unilaterally grants Philippine businesses zero-percent tariffs on over 6,200 product lines — roughly 66 percent of all EU tariff lines.
However, the EU GSP+ is set to expire on 31 December 2027.
Once realized, the EU-Phl FTA could mean that Philippine exports would enjoy preferential tariffs and seamless entry to the EU’s 27-member nations, including France, Germany, Italy and the Netherlands.
12th among Phl’s trade partners
In 2025, Germany ranked 12th among the Philippines’ trading partners (out of 228), with total bilateral trade reaching $5.39 billion.
Germany was also the Philippines’ seventh-largest export market in 2025 (out of 213), with total exports amounting to $3.35 billion.
On the other hand, the European Union was the country’s fifth-largest trading partner in 2025, with total trade amounting to $18.10 billion, based on the Philippine Statistics Authority’s record.
“I was pleased about the fact that the German Philippine Chamber of Commerce and Industry has roughly 300-member companies, amongst them companies from the pharmaceutical sector, from the banking, insurance, logistics and aviation sectors,” the German president said.
As of September 2025, there are at least 40 German-affiliated companies registered in the Philippines. Leading firms include Lufthansa Technik, Bayer, Merck, Boehringer Ingelheim and Linde.