EU and Philippines reach substantial agreement on a free-trade deal
The European Union and the Philippines reached substantial agreement in negotiations for a free-trade deal. The sides instructed negotiators to complete the remaining details as soon as possible, with formal conclusion expected in the coming months. Electronics dominate an annual trading relationship worth nearly 30 billion euros.
Economics & Markets··Midday
From substantial agreement to formal conclusion
The European Union and the Philippines reached substantial agreement in negotiations for a free-trade deal. European Commission President Ursula von der Leyen announced the development after speaking with Philippine President Ferdinand Marcos Jr. EU trade commissioner Maroš Šefčovič and Philippine Trade Secretary María Cristina Aldeguer-Roque instructed negotiators to complete the remaining details as soon as possible. The announcement therefore marks a major negotiating threshold, while formal conclusion is expected in the coming months.[1], [2]
A trading relationship worth nearly 30 billion euros
The Associated Press puts annual trade between the two sides at nearly 30 billion euros. Electronics dominate the relationship: the EU exports aircraft, pork and pharmaceuticals to the Philippines while importing semiconductors, integrated circuits and industrial machinery. That composition places the deal within the two sides' production and supply links as well as their tariff relationship.[2]
A third bilateral deal in Southeast Asia
The Philippines became the third ASEAN member, after Vietnam and Singapore, to reach a bilateral trade deal with the EU. The Association of Southeast Asian Nations is a regional group whose members also include Thailand, Indonesia and Malaysia, with which the EU is negotiating. The Associated Press presents the new agreement as part of Brussels' effort to diversify economic ties amid tensions with traditional trading partners.[2]
