The European Union, in a statement at the World Trade Organization on 24 June 2026, welcomed the Philippines' commitment to an open trading environment and the renewed momentum in negotiations for a comprehensive Free Trade Agreement. Ambassador María Martin-Prat, delivering the EU statement at the Trade Policy Review of the Philippines in Geneva, highlighted that bilateral trade grew by 4.5% to €17.6 billion in 2025 and praised recent economic reforms, including amendments to the Foreign Investments Act, the Public Service Act, and the Retail Trade Liberalization Act, as well as the establishment of Green Lanes for Strategic Investments.
The EU's statement, published by the EEAS, noted the Philippines' acceptance of the WTO Agreement on Fisheries Subsidies in February 2024 and its participation in the Agreement on Electronic Commerce, with support for interim implementation arrangements launched in March 2026. The EU also valued the longstanding trade relationship under the General System of Preferences (GSP+), which has facilitated trade flows and supported the Philippines' integration into global markets. Ambassador Martin-Prat expressed appreciation for the Philippines' continued efforts towards GSP+ implementation.
In the statement, the EU raised several issues for further clarification, including reforms to attract foreign investment and implement economic liberalisation, measures to improve transparency and reduce administrative burdens following changes in the Government Procurement Act, updates on border procedures to reduce costs and enhance predictability for traders, policies affecting trade in agricultural products such as sanitary and phytosanitary measures, and government initiatives aimed at supporting strategic industries, such as the Proudly Filipino law, and their consistency with WTO obligations.
The EU's call for a deeper trade partnership comes as the Philippines seeks to modernise its economy and improve the business environment. An FTA, which would replace GSP+, is seen as a way to further deepen economic ties, create new opportunities, and strengthen economic resilience in an increasingly uncertain global environment. The EU also noted positively the creation of the Anti-Red Tape Authority (ARTA) and expressed interest in understanding how the Philippines intends to address longstanding challenges affecting the investment climate, including regulatory and administrative complexity, infrastructure and logistics constraints, and restrictions affecting foreign participation in certain sectors.