AFTER years of stalled negotiations, the Philippines and the European Union have finally found common ground on a free trade agreement (FTA), driven by sustained negotiations, high-level political backing and growing economic and geopolitical incentives on both sides.
European Union’s Ambassador to the Philippines Massimo Santoro said the breakthrough came after intensive work by negotiating teams, a video call between European Commissioner for Trade and Economic Security Maroš Šefcovic and Philippine Secretary of Trade and Industry Ma. Cristina A. Roque, and the phone call between President Ferdinand Marcos Jr. and European Commission President Ursula von der Leyen Monday night Philippine time.
‘It was a good call which came after intense work conducted by the two teams on the EU and the Philippine side by the chief negotiators,’ Santoro told the BusinessMirror, noting that the discussions also followed a productive interaction between the European Commissioner for Trade and Philippine trade officials.
Santoro described the outcome as a ‘milestone,’ saying both sides had substantially concluded negotiations and established the final framework of the agreement, leaving only residual technical issues and legal review.
He declined to identify a single sticking point that held up the talks, saying trade negotiations typically involve multiple complex issues.
‘In any negotiation, there are elements which are a bit more complex to be tackled than others,’ Santoro said. ‘Nothing is agreed until everything is agreed.’
The breakthrough also reflects a broader convergence of economic and geopolitical interests.
The sixth round of negotiations, held in Manila from May 18 to 22, 2026, saw significant progress in market-access discussions and consolidation of the negotiating text.
The talks were led by Dora Correia of the European Commission and Allan Gepty of the Department of Trade and Industry.
Negotiators reported substantial completion of chapters on digital trade, intellectual property and final provisions, while several other chapters had already been provisionally closed during previous rounds on MSMEs, transparency, anti-fraud clause, sustainable food systems, good regulatory practices, sanitary and phytosanitary measures, car annex and code of conduct for panelists and mediators in state-to-state disputes.
For Chris Humphrey, executive director of the EU-Asean Business Council, shifting global dynamics have made closer cooperation between Europe and Southeast Asia increasingly important.
Humphrey said the European Union and Asean share a commitment to a multilateral, rules-based trading order and adherence to international law, making them natural partners amid rising geopolitical uncertainty.
‘If you’re sitting in Europe, you’ve lost a good friend in the US,’ Humphrey said, arguing that Brussels needs dependable partners around the world and that Asean can serve as a viable alternative amid growing uncertainty in global trade.
The Philippines, meanwhile, has emerged as an attractive destination for investment because of its young workforce, expanding consumer market and strong services sector.
Humphrey said the FTA would benefit the Philippines not only through increased trade in goods but also through expanded trade in services, an area where the country has significant strengths.
He added that the agreement could boost investment, create jobs and increase opportunities for Filipino businesses seeking access to the European market.
Prof. Victor Andres ‘Dindo’ Manhit, president of Stratbase, said the deal also reflects Europe’s desire to deepen ties with strategic partners amid an increasingly fragmented global economy.
He noted that negotiations were suspended during the Duterte administration amid tensions over human rights concerns but that current conditions have created momentum for both sides to pursue stronger economic engagement.
‘We live basically in a fragmented world,’ Manhit said, adding that countries are increasingly seeking economic cooperation with partners they consider strategic allies.
The agreement is now expected to undergo ‘legal scrubbing’ before signing and ratification by the Philippine Congress and the European Parliament.
Santoro said the negotiations have already crossed a critical threshold, with both sides agreeing on the framework that will underpin one of the Philippines’s most significant trade deals in recent years.