THE proposed Philippine-European Union free trade agreement (FTA) is seen to support more investments from European firms, the head of the economic and trade Section of the EU Delegation to the Philippines, Justyna Lasik, told reporters on Tuesday.
“There are plenty of European companies that are here already, but we hope for more,” Lasik said. “European investments are much smaller than elsewhere in the Asean region, especially in the Philippines.” To date, the country hosts over 190 locator companies with EU equity, with more than P400 billion of cumulative European investments and employing over 430,000 Filipinos nationwide, according to the Philippine Economic Zone Authority.
The next round of the FTA talks will be held in Manila on May 18-22. The deal is expected to be signed this year.
The FTA could bring in $12 billion in additional export potential for the Philippines.
The FTA will likewise renew the European Union’s Generalized Scheme of Preference Plus (EU GSP+) with the Philippines — a special trade arrangement granting developing countries duty-free access to the EU market that expires in 2027.
Under the EU GSP+, more than 6,000 Philippine products enjoy preferential access to the EU market with an 80-percent utilization rate in 2025.
Negotiations for an FTA with the EU began on Dec. 22, 2015, but proceeded only in March 18, 2024 in Brussels.
From January to June 2025, total trade in goods between the Philippines and the EU amounted to €8.3 billion.
In 2024, the EU ranked as the country’s fourth largest trading partner, while the Philippines ranked sixth among Asean members doing business with the EU.
Currently there are a number of projects with European investments, including renewable energy and digital undertakings Lasik said.
“There is a huge need, especially now. The development of renewable energy could be crucial. Europe can help the Philippines because we have the expertise in solar and wind energy,” she added.
