The European Union has reached a trade agreement with the Philippines, which includes the elimination of up to 94% of tariffs. This pact aims to diversify the trade relations of the community bloc.
The European Union has taken a significant step in its trade diversification strategy by reaching an agreement with the Philippines, as reported by expansion.com. This pact, expected to be formalised in 2027, aims to reduce tariffs by up to 94%, facilitating the exchange of goods and services between both blocs.
The agreement was announced by Maros Sefcovic, Commissioner for Trade and Economic Security, and Maria Cristina Aldeguer-Roque, Secretary of Trade and Industry of the Philippines. It is anticipated that this will boost trade and investment flows, improving conditions for exporters and service providers.
With a population of 113 million people, the Philippines represents an attractive market for European companies, as current trade between the two is limited to 17.6 billion euros in goods and 10 billion euros in services. The elimination of tariffs will significantly increase these volumes.
The EU has been the fourth most relevant trading partner for the Philippines, but trade with the Asian country only accounts for 0.3% of the total exchanges of the bloc. This new agreement will also open opportunities in the public works sector in the Philippines, allowing European companies to participate in concessions and tenders.
The European Commission highlights that the agreement includes clauses for the protection of intellectual property, as well as preferential access to energy and critical raw materials. Sefcovic stated that “the new agreement provides stronger and more diversified supply chains, which are essential at a time when resilience has become a strategic priority.”
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