Eucolait welcomes the substantial agreement reached at political level between the
European Union and the Philippines on a Free Trade Agreement (FTA), announced today
by European Commissioner for Trade and Economic Security Maroš Šefčovič and
Philippine Trade Secretary Cristina Aldeguer-Roque.
The mutually beneficial agreement, which negotiators have been instructed to finalise as
soon as possible, represents another important step in the EU’s efforts to diversify its trade
partnerships and strengthen ties with South-East Asia, after the conclusion of negotiations
with Indonesia in September 2025 and the entry into force of the FTA with Viet Nam in
2020.
For the EU dairy sector, the agreement will further improve access to one of the region’s
most dynamic markets and put EU exporters on a level playing field with key competitors.
Philippine import duties on dairy products are already comparatively low, ranging from 1%
to 7%, with certain categories such as whey benefiting from duty-free access. The FTA is
expected to eliminate these tariffs and facilitate trade by providing a clear framework for
sanitary and technical barriers.
The Philippines is a key destination for EU dairy exports and a structurally import-reliant
market, with self-sufficiency in dairy estimated at just 1%. Main product categories include
SMP, whey powder, cheese, butterfat as well as condensed and drinking milks. It is
Europe’s 10th destination for dairy – with exports exceeding € 400 million in 2025 – and
the 3rd largest import market in South-East Asia, behind Indonesia and Malaysia.
Eucolait looks forward to the swift conclusion and entry into force of the agreement and
will continue to monitor developments closely during the final stage of the negotiations.
[ENDS]
