The Philippines and European Union ''reached substantial agreement on a free trade agreement, it was announced by trade officials of both sides following a video call on Wednesday.

European Commissioner for Trade and Economic Security Maroš Šefčovič and Philippine Trade and Investment Secretary Ma. Cristina Roque announced the breakthrough, setting the deal on a clear path towards its formal conclusion in the coming months.

European Commission President Ursula von der Leyen spoke with President Ferdinand Marcos Jr. Von der Leyen said she is looking forward ''to returning to the Philippines to sign the FTA (free trade agreement) in 2027, a statement from the European Commission said.

The development came three years after von der Leyen's list to Manila in 2023 when she and Marcos agreed to relaunch the negotiations between the Philippines and European Union after it stalled in 2017.

Roque and Sefkovic welcomed the outcome, which will deepen bilateral trade and investment ties, making them more diversified and resilient, a statement said.

In practical terms, both sides highlighted that the FTA will deliver new opportunities for businesses, including MSMEs, as well as for farmers, manufacturers, and consumers on both sides; stronger, more diversified supply chains, critical at a moment when resilience has become a strategic priority; fair rules and real predictability, underpinned by a shared commitment to a more secure and stable global economy.

Roque and Šefčovič have instructed their negotiating teams to finalize the agreement as soon as possible. PHS