24.09.2026 Trade & Markets #World #EU #Import #Export #Trade agreements

EU reaches FTA deal with Philippines as India-New Zealand pact nears force

Two free-trade negotiating tracks reached their final stages within a single September 2026 week. On 22 September, the European Commission and the Philippines announced they had reached "substantial agreement" on a free trade agreement, following a phone call between Ursula von der Leyen and Ferdinand Marcos Jr. (EEAS). A day earlier, on 21 September, India's trade minister Piyush Goyal announced that the India-New Zealand FTA enters into force on 20 October 2026 (Business Recorder; ITLN).

Permanent access to replace the Philippines' GSP+ status

EU Commissioner for Trade and Economic Security Maroš Šefčovič and Philippine Trade Secretary Ma. Cristina A. Roque issued a joint statement, with negotiating teams instructed to "finalize the agreement as soon as possible" (EEAS). According to Borderlex, the deal liberalises more than 94% of tariff lines, covering 97% of bilateral trade; the Philippines is opening government procurement to a third country for the first time, the text includes an EU list of geographical indications and digital-trade rules, and the Paris Agreement plus human rights are enshrined as "essential elements" (Borderlex).

Still unresolved are specific tariff-rate quotas for sensitive industrial and agricultural goods; talks were launched in 2015, paused under President Duterte and relaunched in March 2024, and Borderlex estimates entry into force will take one to two years, while the Philippines' current GSP+ access expires at the end of 2027 (Borderlex). Six negotiating rounds preceded September's announcement, the last held in May 2026; the deal still needs formal conclusion, signature and ratification before entering into force, and GSP+, which currently grants preferences on two-thirds of EU tariff lines, will be replaced by permanent preferential access (BusinessMirror). EU-Philippines goods trade reached €17.6 billion in 2025, and services trade €10.3 billion in 2024; the EU is the Philippines' fourth-largest trading partner, accounting for 8.3% of its trade (Borderlex). Accumulated EU FDI in the Philippines stands at €15.4 billion, and Philippine FDI in the EU at €2.4 billion (EUnews).

Indian goods enter New Zealand duty-free from day one

The India-New Zealand agreement was signed on 27 April 2026 at Bharat Mandapam in New Delhi; New Zealand's parliament passed implementing legislation on 16 September, and entry into force is set for 20 October 2026 (ITLN; Business Recorder). New Zealand eliminates tariffs — peak rates of up to 10% — on all imports from India from the date the agreement takes effect (ITLN; MFAT).

According to MFAT, 95% of New Zealand's current exports to India will gain preferential treatment: 57% of lines are eliminated on day one, rising to 82% over time, with a further 13% subject to substantial reductions. Forestry products enter duty-free on more than 95% of exports immediately, with the remainder phased over seven years; sheep meat, wool and coal are eliminated on entry into force; fish and seafood are phased out over seven years; kiwifruit and apples gain new quota access, wine tariffs are cut by 66-83% over ten years, mānuka honey by 75% over five years, and infant formula and dairy preparations are phased out over seven years (MFAT).

India retained protection for sensitive sectors: dairy, non-sheep meat, key agricultural commodities, sugar and edible oils remain outside the concessions; Indian textiles, leather goods, footwear, gems and jewellery, engineering products and processed foods gain immediate advantages. New Zealand apples, kiwifruit and mānuka honey enter India via tariff-rate quotas with minimum import prices and seasonal windows; the agreement opens 118 services sectors, and ITLN puts 2025-26 merchandise trade at US$1.1 billion (ITLN). New Zealand committed to promoting investment into India, with the aim of increasing private-sector investment by US$20 billion over 15 years, and India will establish a New Zealand Investment Desk (MFAT).

What it means for exporters and importers

For businesses trading between the EU and the Philippines, little changes immediately: the deal remains at the "substantial agreement" stage, and tariff terms will only be locked in once the text is finalised, signed and ratified — until then, GSP+ preferences apply through the end of 2027 (Borderlex). The India-New Zealand track, by contrast, has already moved into the operational stage: from 20 October 2026, exporters shipping to New Zealand from India gain duty-free access across all tariff lines, and New Zealand suppliers of forestry products, sheep meat, wool and coal need no transition period, as tariff elimination applies from the date the agreement enters into force (MFAT; ITLN).

Primary sources

This material is for information only and does not constitute legal advice or customs consulting. Verify changes against the primary sources before acting.