The Market Monitor Minding the Nation's Business
The European Union is keen to expedite negotiations on a free trade agreement (FTA) with the Philippines in response to rising global trade tensions, particularly those triggered by the United States’ newly imposed tariffs.
EU Ambassador to the Philippines Massimo Santoro said both the EU and the Philippines share a “political wish” to accelerate the trade talks, underscoring the need for closer economic ties in an increasingly protectionist global environment.
“It’s not the tariffs in itself that are impacting the negotiation, but it’s the fact that when all those countries in the world, like us, the Philippines and many others, see that somebody wants to bring in tariff, etc.— what we consider obstacles to international free trade— it comes as a normal political response that we have even a stronger wish to have this FTA done faster,” Santoro told reporters during the Europe Day 2025 celebration in Makati City.
He emphasized that liberalizing trade is central to the EU’s strategy. “It’s a way for us to protect our markets. The best way to protect markets is to make them free. This is the quintessence of our thinking,” he said.
Foreign Affairs Acting Secretary Ma. Theresa Lazaro echoed the EU’s enthusiasm, expressing hopes that the FTA could be finalized by 2026.
“Of course, it has its own pace… An FTA is not easy to negotiate, but I think there’s already an intention as well as the commitment to come up with an FTA,” Lazaro said.
Following productive negotiation rounds in October 2024 and February 2025, the next round of talks is set for the third week of June in Brussels. Santoro is hopeful for another “fruitful” session and noted that discussions have gained momentum under the Marcos administration.
“What we, but also the Philippine side, want is to have something which is good in content for both sides, strong, fruitful and at the same time, possibly quick,” he said. “We do not put artificial deadlines, but I must also observe that it is with the current (Marcos) administration that these negotiations are particularly fruitful.”
The FTA talks began in 2015 but were suspended in the following years due to EU concerns over human rights in the Philippines. Negotiations formally resumed after European Commission President Ursula von der Leyen visited Manila in 2023 and reaffirmed the EU’s commitment alongside President Ferdinand Marcos Jr.
On March 18, 2024, both parties officially announced the relaunch of the FTA negotiations in Brussels.