BRUSSELS – The European Union and the Philippines unveiled a new free trade agreement Tuesday, adding to Brussels’ expanding network of bilateral deals as it works to broaden its economic partnerships amid continuing tensions with major trading powers including China, Russia and the United States.
EU trade commissioner Maroš Šefčovič said he and Philippine Trade Secretary María Cristina Aldeguer-Roque shaped the agreement to increase annual trade between the 27-member bloc and the Southeast Asian country, which currently stands at nearly 30 billion euros, or about $35 billion. The Philippines has a population of roughly 115 million.
“It also delivers stronger, more diversified supply chains at the moment when resilience has become a strategic priority,” Šefčovič said.
Electronics make up much of the existing trade relationship. The EU sells aircraft, pork and medicines to the Philippines, while Philippine exports to Europe include semiconductors, integrated circuits and industrial machinery.
The Philippines becomes the third ASEAN member to reach a bilateral trade agreement with the EU, following Vietnam and Singapore. Talks are also underway with Thailand, Indonesia and Malaysia, while both sides continue to pursue a broader long-term free trade agreement covering the ASEAN bloc and the EU.
“There is a bigger picture here too,” Šefčovič said. “This agreement sends a clear signal that the EU is reinforcing its engagement with the Indo-Pacific.”
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The agreement is part of a wider European push to find new sources of growth and stability, with Brussels pursuing stronger trade ties from Australia to Argentina as the bloc faces a turbulent geopolitical landscape shaped by the war in Ukraine and conflicts in the Middle East.
European officials are also seeking alternatives to traditional energy supplies, managing strained relations with the Trump administration and responding to allegations from EU member states that Russia is conducting hybrid attacks. At the same time, China’s enormous trade surplus and near-dominance in critical minerals have added urgency to the EU’s diversification efforts.
The EU-Philippines deal broadly reflects the “middle powers” approach Canadian Prime Minister Mark Carney presented earlier this year at the World Economic Forum in Davos, Switzerland. Carney was also the guest of honor last week at the European Parliament in Strasbourg, where European Commission President Ursula von der Leyen delivered her annual State of the European Union address.
During that speech, von der Leyen said the EU planned to create a new form of “associated membership” for Canada.
“In this new world, we must urgently reimagine our partnerships,” von der Leyen said.
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