EU and Philippines reach initial free trade agreement

The European Union and the Philippines announced an initial "substantial agreement" on a free trade deal that the European Commission says should become a full pact in the coming months.

EU Trade Commissioner Maros Sefcovic said the main parameters are set at the political level and now must be translated into legal text. The agreement would eliminate more than 94% of tariffs on both sides, benefiting EU exports of machinery, appliances, transport equipment, and food products like meat, dairy, and spirits. Bilateral trade currently stands at €17.6 billion in goods and €10.3 billion in services.

The deal fits a broader EU turn toward Southeast Asia — the bloc has already signed agreements with Vietnam and Indonesia and is negotiating with Malaysia and Thailand — driven in part by efforts to offset the impact of U.S. tariffs under President Donald Trump.

The Philippines is also negotiating a separate trade agreement with Canada. Canadian Trade Minister Maninder Sidhu said those talks are "90% completed" and that Canada's primary offer to the region is energy, including liquefied natural gas exports.