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European Union strikes a new free trade deal with the Philippines

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European Union strikes a new free trade deal with the Philippines
News

News

European Union strikes a new free trade deal with the Philippines

2026-09-22 16:26 Last Updated At:16:30

BRUSSELS (AP) — The European Union and the Philippines announced a new free trade deal on Tuesday in the latest bilateral agreement struck by Brussels as it seeks to diversify its economy as tensions persist with traditional trading partners including China, Russia and the United States.

The EU's top trade negotiator, Maroš Šefčovič, said that he and Philippine Trade Secretary María Cristina Aldeguer-Roque structured the deal to grow the nearly 30 billion euros (around $35 billion) of annual trade between the 27-nation EU and the Southeast Asian nation of 115 million people.

“It also delivers stronger, more diversified supply chains at the moment when resilience has become a strategic priority,” Šefčovič said.

Trade is dominated by electronics, with the EU exporting aircraft, pork and pharmaceuticals while importing semiconductors, integrated circuits and industrial machinery manufactured in the Philippines.

The Philippines is the third nation from the ASEAN bloc after Vietnam and Singapore to sign a bilateral trade deal with the EU. Negotiations are ongoing between the European Commission and Thailand, Indonesia and Malaysia, while a larger free-trade agreement is hoped for in the long term between ASEAN itself and the EU.

“There is a bigger picture here too,” Šefčovič said. “This agreement sends a clear signal that the EU is reinforcing its engagement with the Indo-Pacific.”

The EU has sought growth and stability in new trade links from Australia to Argentina as the bloc itself is beset by a geopolitical maelstrom, including conflicts in the Middle East and the war in Ukraine.

The EU also has been dealing with the need to explore alternative energy sources, heightened tensions with the Trump administration, officials from EU member states accusing Russia of hybrid attacks, and China running a gargantuan trade imbalance and a near-monopoly over critical mineral supplies.

The EU deal with the Philippines roughly tracks with the “ middle powers ” strategy laid out at the World Economic Forum in Davos, Switzerland, earlier this year by Canadian Prime Minister Mark Carney. Last week, he was the guest of honor in the European Parliament in Strasbourg at the annual State of the European Union speech by European Commission President Ursula von der Leyen.

She said then that the EU would forge a new kind of “ associated membership ” for Canada.

“In this new world, we must urgently reimagine our partnerships,” von der Leyen said during her speech.

FILE - European Commission President Ursula von der Leyen delivers a speech at the annual State of the European Union at the European Parliament in Strasbourg, eastern France, Wednesday, Sept 16, 2026. (AP Photo/Pascal Bastien, File)

FILE - European Commission President Ursula von der Leyen delivers a speech at the annual State of the European Union at the European Parliament in Strasbourg, eastern France, Wednesday, Sept 16, 2026. (AP Photo/Pascal Bastien, File)

ABOARD THE BRITISH PRIME MINISTER’S PLANE (AP) — Prime Minister Andy Burnham said Monday that Britain has agreed to provide limited military support to Saudi Arabia to repel attacks by Iran-backed Houthi rebels in Yemen.

Burnham told reporters as he flew to the United Nations General Assembly in New York that he had agreed the Royal Air Force will provide air-to-air refueling of Saudi planes. The agreement is for a matter of weeks, but Burnham said it will be kept under review.

The conflict between the Houthis and Yemen’s Saudi-backed government has reignited, with the Houthis aiming missile and drone strikes at Saudi Arabia, including one that targeted Riyadh on Saturday before being intercepted. The Houthis also declared a blockade on Saudi shipping in the Bab el-Mandeb Strait and the Red Sea, attacking Saudi-linked vessels and oil facilities inside the kingdom, the world’s top oil exporter.

The Houthis advanced inside Yemen earlier this month, seizing the crucial port city of Mokha and key Red Sea islands allowing them to better monitor shipping traffic through the Bab el-Mandeb, through which some 12% of world trade normally passes.

Burnham said he was “acting to secure the interests of Britain and the wider region" at a moment when Saudi Arabia is facing attacks and it is critical to keep passages for oil open.

Britain has condemned the Houthi attacks and said the U.K. will “work with partners to support regional stability, protect civilians and support humanitarian access.”

U.K. officials had previously declined to comment on “operational matters” but noted that Britain and Saudi Arabia have a close defense partnership.

The U.S., which bombed the Houthis under the Biden and Trump administrations, has shown no interest in getting involved militarily this time around.

U.K. officials say the agreement will start in the coming days, and involve one RAF Voyager refueling Saudi planes on “defensive” missions.

The Associated Press reported last week that Saudi Arabia has asked its allies, including France, Britain, Pakistan and Egypt to deploy air-defense support to the region to help defend against missiles and drones fired by Houthis and other Iran-backed groups on the kingdom.

Britain's Prime Minister Andy Burnham gives a speech during a reception at 10 Downing Street, London, Monday Sept. 21, 2026, to recognise the contribution of organisations and volunteers who supported communities across the UK this summer, through the recent heatwaves, wildfires and other emergencies. (Jonathan Brady/Pool Photo via AP)

Britain's Prime Minister Andy Burnham gives a speech during a reception at 10 Downing Street, London, Monday Sept. 21, 2026, to recognise the contribution of organisations and volunteers who supported communities across the UK this summer, through the recent heatwaves, wildfires and other emergencies. (Jonathan Brady/Pool Photo via AP)

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