EU-ASEAN Council Welcomes EU-PH Trade Deal
The EU-ASEAN Business Council has welcomed the substantial agreement reached by the European Union and the Philippines on a free trade deal, saying it could strengthen market access, investment and the Philippines’ integration into regional value chains.
European Commission President Ursula von der Leyen and President Ferdinand Marcos Jr. announced the agreement on September 22, marking a major milestone in negotiations that resumed in 2024 after years of being on hold.
EU-ASEAN Business Council Executive Director Chris Humphrey congratulated the negotiating teams, saying the development reflects the growing strategic importance of ASEAN to the EU and the shared commitment to a deeper, long-term economic partnership.
“We warmly welcome the agreement between European Commission President Ursula von der Leyen and Philippine President Ferdinand Marcos Jr. on a free trade deal between the EU and the Philippines,” Humphrey said.
He said the agreement represents a significant opportunity for both European and Philippine businesses by providing a more stable, predictable and rules-based trading environment amid heightened global uncertainty.
Improved market access, lower trade barriers and greater regulatory certainty, Humphrey said, could create new commercial opportunities while strengthening the Philippines’ position as a destination for European investment and as part of regional supply chains.
The EU-ASEAN Business Council’s latest business sentiment survey found that 43% of European business leaders plan to expand in the Philippines over the next five years, underscoring the potential for deeper investment ties.
“The challenge now is to translate the country’s strong fundamentals into a competitive operating environment, making it easier for companies to invest, produce and integrate the Philippines into regional supply chains,” Humphrey said.
The latest development builds on six rounds of EU-Philippines FTA negotiations since talks resumed in 2024. The sixth round was held in Manila from May 18 to 22, 2026, with discussions covering areas aimed at strengthening economic ties, expanding opportunities for businesses and consumers, and supporting resilient and diversified supply chains.
According to the European Commission, the EU was the Philippines’ fourth-largest trading partner in goods in 2025, with bilateral goods trade reaching €17.6 billion. EU foreign direct investment stock in the Philippines stood at €15.4 billion in 2024.
For Humphrey, however, the Philippines deal should form part of a broader push to deepen EU economic engagement across Southeast Asia.
He urged the EU to build on the momentum by advancing negotiations with Thailand and Malaysia, saying that further bilateral agreements would reinforce Europe’s long-term economic commitment to the region as ASEAN-EU relations approach their 50th anniversary in 2027.
“However, bilateral agreements should not be the end point,” Humphrey said. “European businesses have consistently called for a region-to-region FTA.”
He said the EU and ASEAN should begin laying the groundwork for a broader economic architecture that reflects the scale and strategic importance of their relationship.
The EU and ASEAN launched negotiations for a region-to-region trade and investment agreement in 2007, but shifted to bilateral negotiations in 2009. The European Commission has described those bilateral agreements as building blocks toward a future region-to-region agreement.
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