26/10/2025
Statement for Unions for a Trade Justice
Statement of Unions for Trade Justice
Unions Warn: EU–PH FTA Could Cost More Than It Promises
On the 4th Round of Negotiations for the PH–EU Free Trade Agreement
Unions for Trade Justice express grave concern over the government’s rush to sign an expansive Free Trade Agreement (FTA) with the European Union — a deal that could cost us far more than it claims to deliver.
This FTA is far broader than any agreement we’ve ever entered into, intruding into vital areas such as government procurement, competition, investment policy, digital trade, and even minerals. These provisions would allow EU investors to compete with our local industries unhampered by government regulation.
But are Filipino industries ready for that kind of competition? Without a clear industrial policy, the Philippines is negotiating blindly.
Government justifies the rush by saying we must “lock in” the benefits of the EU’s GSP+ before it expires in 2027. But this is a false choice. The GSP+ can be renewed or extended without surrendering our future policy space.
We must not trade temporary tariff perks for permanent constraints on our right to regulate, develop local industries, and protect our workers.
Even the government’s aim of technology transfer is hollow. EU FTAs ban performance requirements—such as obligations for investors to transfer technology, use local inputs. So how can this deal genuinely help us build our renewable energy sector or advance our industrialization?
We are also alarmed by the digital trade provisions—crafted to protect Big Tech, not our people. Data is the raw material of the digital economy, yet this FTA could hand control of it to foreign corporations and prevent us from regulating them. Even the U.S.A. has realized in its own trade talks in Indo Pacific Economic Framework (IPEF).
Meanwhile, the so-called Trade and Sustainable Development chapter sounds good on paper—but our experience with GSP+ shows that promises on labor and human rights rarely translate into real accountability.
The truth is clear: rushing this FTA is not about development—it’s about giving away our economic sovereignty.
If the deal threatens our ability to chart our own economic path, to protect workers, and to build industries that serve our people—then we must stop and rethink.
We ask: Is this FTA what the Philippines truly needs right now? And who really stands to benefit from it? Why the rush?