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EU, Manila race to seal FTA by '27

Manila Bulletin

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October 18, 2025

The European Union (EU) is aiming to secure a free trade agreement (FTA) with the Philippines by the end of 2027, or before the expiration of a special incentive system that provides the country duty-free access for over 6,200 products to the 27-member bloc.

- By DEXTER BARRO II

EU Ambassador to the Philippines Massimo Santoro said he is optimistic that, at the current pace of negotiations, the FTA could enter into force before December 2027.

If there is no extension, the Philippines’ utilization of the Generalized Scheme of Preferences Plus (GSP+) arrangement would expire in December 2027.

Under GSP+, the country benefits from having zero tariffs on the export of 6,274 products to the EU. This is exchange of upholding international conventions on human rights, labor rights, environmental protection and climate change, and good governance.

Santoro said the Philippines’ utilization of the GSP+ reached an all-time high of 80 percent.

“Already, [GSP+] is a very powerful tool. Still, FTA would be even more powerful and would be, of course, applicable for both sides,” Santoro said on the sidelines of the 2025 European-Philippine Business Dialogue.

“So, this is why we are very much hopeful that we can be fast in these negotiations, securing good results for both sides,” he added.

After restarting talks in October last year, the EU and the Philippines have now completed three rounds of FTA negotiations.

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