Philippines Advances Free Trade Agreements with EU and Chile

Trade Secretary Cristina Roque has confirmed that the Philippines is making significant strides in negotiations for free trade agreements (FTAs) with both the European Union (EU) and Chile. These agreements, which encompass investments and cooperation beyond mere tariff reductions, are expected to be concluded this year, contingent on resolving outstanding issues in the agriculture sector.

“The issue is in the agriculture sector. We’ve already come up with a compromise, but it’s confidential.”Cristina Roque, Trade Secretary

Roque stated that a compromise has been reached regarding agricultural concerns, although details remain confidential. The seventh round of negotiations with the EU took place from June 29 to July 3, while discussions with Chile were held from October 6 to 10, 2025. Both agreements are expected to enhance trade relations significantly, with the EU FTA potentially unlocking an additional $12 billion in export opportunities for the Philippines and securing the renewal of the EU’s Generalized Scheme of Preferences Plus (GSP+), which offers reduced tariffs for Philippine exports.

According to data, trade between the Philippines and the EU reached €8.3 billion (approximately $9.1 billion) in the first half of 2025. Meanwhile, the Philippines-Chile Comprehensive Economic Partnership Agreement (CEPA) will mark the country’s inaugural FTA in Latin America, with bilateral trade having surged 137 percent in 2024 to $334.13 million.

“Once concluded, the EU FTA could unlock $12 billion in additional export potential.”Cristina Roque, Trade Secretary

In addition to these agreements, the Philippines is also pursuing an FTA with Canada, aiming for completion by the end of the year. Currently, the Philippines has established four bilateral trade agreements with Japan, the European Free Trade Association (comprising Iceland, Liechtenstein, Norway, and Switzerland), South Korea, and the United Arab Emirates.

However, the backdrop of these trade negotiations is complicated by rising tensions in the South China Sea. Recently, the Philippines accused the Chinese Coast Guard of assaulting a Filipino serviceman during an incident near the disputed Ayungin Shoal. This incident, described by the National Task Force for the West Philippine Sea (NTF-WPS) as “violent and unlawful,” involved a Chinese vessel allegedly striking a Philippine serviceman on the head with a wooden baton, necessitating medical attention.

While the Philippines emphasized its commitment to resolving disputes peacefully and upholding its sovereign rights, the incident underscores the precarious nature of regional stability, which could impact trade negotiations. Indonesian coverage of the Philippines' FTA advancements has largely focused on the potential economic benefits and the strategic importance of these agreements for enhancing trade relations in the region. In contrast, Philippine outlets framed the situation as one of urgency, highlighting the need for a stable maritime environment to ensure the success of these trade agreements.

This divergence in framing illustrates the complexities of regional relations, where economic aspirations are often intertwined with geopolitical tensions. As the Philippines seeks to finalize these FTAs, the ongoing maritime disputes with China may pose challenges that require careful navigation.