Philippines Pushes for Broader EU FTA Coverage Amid GSP+ Expiry

By Beatriz Marie D. Cruz, Senior Reporter THE PHILIPPINES is still pushing to broaden the coverage of its free trade agreement (FTA) with the European Union (EU), the Department of Trade and Industry said. “In terms of market access, of course, the objective is to really not just secure preferential market access that we have been enjoying in the GSP+, but to really expand that further,” Trade Undersecretary Allan B. Gepty told reporters late Tuesday, referring to the Generalized System of Preferences Plus (GSP+), a scheme which allows selected Philippine goods to be shipped to Europe duty-free. Under its new trade deal with the EU, the Philippines is targeting a higher level of trade liberalization, he said. “We have to really push for all products, as a general rule… The more product coverage, the better,” Mr. Gepty said. The Philippines and EU on Tuesday announced “substantial agreement” on an FTA after years of negotiations. European Commission President Ursula von der Leyen said she will be visiting Manila next year for the signing of the FTA. The trade deal is expected to deepen bilateral trade and investment ties between the Philippines and the EU, which has been deemed critical amid ongoing geopolitical uncertainties. Mr. Gepty said both sides are rushing to finalize the FTA before the Philippines’ GSP+ tariff privileges expire by 2027. “We have reached upper-middle income status, and under the rules, if you maintain that status for three consecutive years, then you will no longer qualify for the EU’s GSP+,” he said. “It is imperative for us to really conclude the FTA as soon as possible, so there will be no disruption to our preferential market access to the EU,” Mr. Gepty added. Prior to the FTA, the Philippine and the EU’s trade relationship was based on GSP+, which allows the duty-free entry of over 6,000 products to Europe. Mr. Gepty said that new FTA will be comprehensive, with its coverage beyond market access for goods. “It has also other market access elements on services, investments, and also a lot of subject matters, such as intellectual property, competition, government procurement, DBTs (direct business transactions), mutual administrative assistance, and customs procedures,” he said. In a statement, independent think tank Stratbase Institute said the progress towards the FTA is a milestone in strengthening Philippine economic resilience. “Anchoring trade in clear, enforceable rules allows the Philippines to diversify its commercial relationships and buffer its domestic economy against external shocks,” Stratbase Institute President and Professor Victor Andres Manhit was quoted as saying. The EU FTA is expected to unlock around $12 billion in export potential, the Department of Trade and Industry has said. The EU was the Philippines’ fifth-largest trading partner in 2025, with total trade valued at $18.1 billion, according to the Philippine Statistics Authority.