PH-EU Free Trade Agreement: Permanence beyond preference

Negotiations for a Philippines-European Union Free Trade Agreement (FTA) are proceeding at a very slow pace and must be speeded up.

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The European Chambers of Commerce of the Philippines (ECCP) has warned that unless the talks accelerate, the FTA may not be concluded by 2027, the expiry year of the current Generalized System of Preferences Plus (GSP+) that covers the Philippines’ current trade privileges.

The message is clear. The Philippines must act with urgency, or risk losing one of its most valuable footholds in the global market.

Under the GSP+, more than 6,200 Philippine products including coconut oil, tuna and pineapples, enter the European market with zero or reduced tariffs. In 2024, utilization of these privileges reached an impressive 80 percent. This shows that Filipino exporters have adapted well to EU demand. Yet, this success story may soon unravel of a comprehensive FTA is not in place. Without one, Philippine products will face higher tariffs and lose preferential access to the EU’s 450 million-strong consumer base — a market defined by high purchasing power and growing demand for sustainable goods.