In the booming region of Southeast Asia, the Philippines is gaining significance for German business as a reliable partner in geopolitically uncertain times. During the forthcoming ASEAN discussions of EU Trade Commissioner Šefčovič in Manila, the German business community is hopeful for a breakthrough in negotiations.
21.09.2026 - "German business places high expectations on the swift conclusion of trade talks with the Philippines. This key ASEAN partner, a booming nation with 115 million inhabitants, offers significant market potential. An ambitious and comprehensive agreement can streamline access for German companies and effectively reduce existing trade barriers. Moreover, expanding economic relations makes an important contribution to diversifying German supply chains and mitigating risks associated with strategic dependencies. This requires political commitment from the federal government and the European Commission now.
The focus of the agreement must be on complete tariff reductions across all industrial sectors and the opening of public procurement markets. Equally crucial: market access must not be hindered by excessive and impractical rules of origin. Trade in services and investments, as well as the mobility of skilled workers, should also be significantly facilitated. Furthermore, close regulatory cooperation is important to ensure that new trade barriers do not emerge in the first place.
Given growing geopolitical tensions, a deeper partnership with the Philippines is strategically wise – especially in the areas of raw materials and digitization, which harbor tremendous economic opportunities. Upon concluding the agreement, the EU should aim to expand bilateral trade agreements in the region into a comprehensive agreement with all of ASEAN. The goal must be to significantly improve trade relations with the entire region."
Background: Negotiation Status and Key Figures
The EU has been negotiating a free trade agreement with the Philippines again since March 2024; by May 2026, the fifth round was already completed, and the conclusion of the agreement is considered imminent. EU-Philippines trade grew by 4.5 per cent in 2025 to reach 17.6 billion euros.
With around 115.8 million inhabitants and a GDP of approximately 470 billion US dollars, the Philippines ranks among the 35 largest economies worldwide – ahead of Denmark, Romania, or South Africa.
For Germany, bilateral trade volume in 2025 was 6.4 billion euros (€1.9 billion in exports, €4.6 billion in imports). At the beginning of 2026, German exports increased by a third. Major exports include data processing devices (25 per cent) and machinery (15 per cent), while imports are dominated by data processing devices (62 per cent) and electrical equipment (21 per cent).
German foreign trade has been represented on-site by the German Chamber of Commerce Abroad since 2008; the German-Philippine Chamber of Commerce and Industry has around 290 member companies. German investment stock amounts to €1.5 billion.
Also, read our DIHK Position Paper Southeast Asia 2026 (only available in German)
- Relevant in topic:
- International Trade and Market Access
- Key areas:
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- Foreign Trade
It has been translated with the assistance of AI.
No guarantee is made as to the accuracy or completeness of the translation.
Released 21.09.2026
Pressekontakt
Julia Fellinger
Spokesperson