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Philippines races to seal EU, UAE, Chile free-trade deals in 2026

Published Dec 2, 2025 04:22 pm
Trade Secretary Cristina Roque (Dexter Barro II/MANILA BULLETIN)
Trade Secretary Cristina Roque (Dexter Barro II/MANILA BULLETIN)
The Philippines will sign at least three free-trade agreements (FTAs) next year, including a historic deal with the European Union (EU), as part of the government’s bid to boost the country’s exports, which remain robust despite global headwinds.
Speaking at the National Exporters’ Week 2025, Department of Trade and Industry (DTI) Secretary Cristina Roque confirmed that the country will seal FTAs with the EU, Chile, and the United Arab Emirates (UAE) next year.
“That’s another good news for Philippine exporters. So let’s take advantage of this. Let’s open our market to the world. Let’s open the opportunities to the world,” said Roque.
Roque said the first of these agreements that will enter into force is the comprehensive economic partnership agreement (CEPA) with the UAE, now scheduled for signing in January 2026.
Both countries have spent months setting the stage for the CEPA signing schedule, having concluded negotiations in the first half of the year.
Once signed, this will be the country’s first trade deal with a Middle Eastern state and its first linkage with a member of the Gulf Cooperation Council (GCC).
The CEPA is expected to boost investments from the UAE into the Philippines, particularly through sovereign wealth funds (SWFs).
The DTI is also keen on signing the CEPA with Chile next year, which will be the country’s first FTA with a Latin American state.
Trade Undersecretary Allan Gepty earlier said the government is working to secure the agreement “at the soonest possible time,” following a mutual commitment with the Chilean side.
Gepty, the country’s top negotiator for FTAs, previously said both countries aim to complete the CEPA provisions before the end of the year.
Roque also said the country will finalize the FTA with the EU next year—significantly faster than the 27-member bloc’s target of at least before the end of 2027.
“Next year, we will be signing the EU FTA. Again, this is good news for the exporters. So the price will go down. So that means we will be very competitive,” said Roque.
In October, EU Ambassador to the Philippines Massimo Santoro said the FTA will likely enter into force before December 2027, given the current pace of negotiations.
This ensures that a trade deal is reached before the expiration of the Philippines’ use of the Generalized Scheme of Preferences Plus (GSP+) arrangement, which currently provides tariff exemptions to over 6,000 goods entering the EU.
Beyond these FTAs, the government is also looking to secure an FTA with Canada, with potential signing also set for next year.
Complementing these efforts, the DTI has launched the FTA Origin Management System (OMS), developed with assistance from South Korea.
The OMS automates origin determination, certification, and document management to make it easier for exporters to avail of tariff preferences. This is expected to reduce processing time, particularly for micro, small, and medium enterprises (MSMEs) navigating FTA requirements.
The DTI is also rolling out PHX SOURCE, a comprehensive online discovery platform featuring over 6,000 Philippine exporters and their products and services for global buyers. The platform will connect local exporters with international buyers through a unified directory, real-time analytics, and engagement tools.
“Let’s not limit our exports to just one country so that just in case something happens, we still have many other countries that we can rely on,” said Roque.
“And of course, the more countries we export to, the more sales or the more income that we have. And a lot of communities that we can help and a lot of jobs that we can provide,” she added.
The latest preliminary data from the Philippine Statistics Authority (PSA) showed that goods exports jumped 13.8 percent to $70.43 billion from January to October, compared to $61.9 billion in the same period last year.
During the period, exports of electronics grew by 11.7 percent to $40.82 billion from $36.54 billion, reflecting robust demand for semiconductor and electronic component manufacturing.
Non-electronics exports meanwhile reached $29.61 billion, up 18.6 percent from $25.35 billion, driven by manufactured products, minerals, and agro-based goods.
Considering ongoing challenges such as the protectionist policy of the United States (US), the DTI chief said this reflects the strength of the domestic export market.
“That means that the world wants our product. So let’s use this opportunity so that we can be more aggressive in selling,” Roque said.
Local exporters earlier secured tariff exemptions for several agricultural exports to the US after a recent policy change in America, increasing the imposition of zero tariffs on over 65 percent of the country’s shipments.
“For those that are in the other industries, rest assured, we are still negotiating and we are still fighting for the different industries of the Philippines,” said Roque.
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