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The European Union is seeking a comprehensive and more modern free trade agreement with the Philippines, EU ambassador Massimo Santoro told local media this week
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The pact should include a dedicated chapter on digital trade, the envoy said at a forum hosted by the Makati Business Club
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Santoro said the proposed FTA is designed to reflect evolving global economic trends and is intended to go beyond the structure of the EU’s previous trade deals
The European Union is seeking a comprehensive and more modern free trade agreement (FTA) with the Philippines, EU ambassador Massimo Santoro to the Philippines told local media this week.
The pact should include a dedicated chapter on digital trade, the envoy said at a forum hosted by the Makati Business Club.
Santoro said the proposed FTA is designed to reflect evolving global economic trends. It is intended to go beyond the structure of the EU’s previous trade deals in the region, he said during the Foreign Leaders Series.
Said Santoro: “Maybe it will become, as a consequence, that the very specific content of this FTA will still reflect the structure and modalities of those (past) agreements, but will be a bit more updated.”
He also said it’s important to have a digital trade chapter for the case of the new Philippines FTA.
There are strong opportunities for Philippine companies to take part in sustainability projects under the EU’s €300-billion Global Gateway strategy, he also said.
The Global Gateway strategy is an initiative that seeks to mobilize public and private investments into green infrastructure and energy transition programs worldwide.
According to the ambassador, “There is ample room for the private sector, not only ample room, but a necessity, for it to become part of this.”
The inclusion of digital trade is considered a recognition of the Philippines’ fast-growing e-commerce sector, which contributed P302 billion to the economy in 2024.
The EU is seeking ways to promote free and secure data flows while mitigating digital risks through legal frameworks such as the EU’s Digital Services Act.
Santoro cited institutions such as the European Investment Bank and the EU Sustainable Development Fund as key enablers of private-sector participation by making investments less risky.
An initial 60-million-euro grant for green economy initiatives was scaled up to 480 million euros when EU member states joined in co-financing efforts.
The two sides will be working to finalize provisions that could open new doors for Philippine exporters, especially in the digital and sustainable development sectors.
READ: PH-EU FTA talks to conclude by 2027 — Marcos
