The European Chamber of Commerce of the Philippines (ECCP) said that the Philippines maintaining its position as the second-highest ranked country in terms of trade facilitation in Southeast Asia bodes well for its ongoing free trade agreement (FTA) negotiations with the European Union (EU).

In the 2025 Global Survey on Digital and Sustainable Trade Facilitation by the United Nations (UN), the Philippines posted an overall trade facilitation score of 91.4 percent, up from 86 percent in the previous year.

The UN gave the Philippines a perfect rating of 100 percent for its transparency, formalities, institutional arrangement, and cooperation related to trade.

The country’s paperless trade and cross-border paperless trade received ratings of 81.48 percent and 83.33 percent, respectively.

The Philippines only lagged behind Singapore, which has a trade facilitation score of 96.77 percent.

ECCP President Paulo Duarte commended the government for overseeing reforms that digitalized customs procedures and advanced paperless trade, cultivating the country’s strong trade facilitation.

“This achievement reflects the government’s dedication to streamlining trade processes through implementing key legislation and initiatives,” he said in a statement.

Duarte pointed to the Customs Modernization and Tariff Act of 2016 and the Ease of Doing Business and Efficient Government Service Delivery Act of 2018 as key drivers in transforming the country’s trade rules.

Before the passage of these laws, the Philippines had a trade facilitation score of 65.59 percent in 2015 and 69.89 percent in 2017.

Duarte cited the continued development of the Philippine National Single Window and TradeNet, which streamlined the submission of key documents into a single platform, as another major contributor to the improvement.

He likewise lauded the Bureau of Customs’ modernization efforts, including its authorized economic operator program that enables a more seamless movement of goods.

“The ECCP is committed to support the government in fully operationalizing and implementing these measures to both increase transparency and reduce overall trade costs,” he said.

Duarte underscored that the country’s high ranking in trade facilitation will further strengthen its position in the ongoing FTA negotiations with the EU.

The Philippines and the 27-member bloc held their third round of talks in June, with the next round scheduled for October in Manila.

Expected to be the most comprehensive trade agreement of the Philippines, the FTA with the EU is poised to shield local exporters from potential headwinds stemming from the United States’ (US) tariff policy.

“The EU-Philippines FTA will not only reflect the country’s robust trade framework, but lead to increased opportunities, economic growth, and stronger bilateral ties,” said Duarte.

Based on government data, the EU was the Philippines’ fifth-largest trading partner last year, representing 7.7 percent of the country’s total trade.

Philippine exports to the EU reached $8.1 billion, while imports from the EU stood at $7.5 billion. The total trade between the two parties totaled $15.5 billion.

Trade Secretary Cristina Roque earlier said that she expects FTA negotiations to conclude next year.