Metro Manila, Philippines – The Philippines and the European Union are working to sign a free trade deal in 2027 after reaching substantial agreement on major points, according to statements released by the European Commission.

European Commission President Ursula von der Leyen was quoted as saying she looked forward to returning to the Philippines next year to sign the agreement. Negotiating teams have been instructed to finalize the remaining details in the coming months.

Von der Leyen discussed the deal with President Ferdinand Marcos Jr. in a call on Monday, Sept. 21, three years after the two leaders agreed in Manila to relaunch negotiations.

In a separate joint statement Tuesday, Trade Secretary Ma. Cristina Roque and EU trade chief Maroš Šefčovič announced what they called a breakthrough following their own video call.

The two sides said they had reached “substantial agreement” and placed the deal on the path to formal conclusion in the coming months. They did not specify which provisions are still pending.

Roque and Šefčovič said the agreement is expected to create opportunities for businesses, including micro, small and medium enterprises, as well as farmers, manufacturers and consumers.

They also cited more diversified supply chains and clearer trade rules as intended benefits.

The planned 2027 signing would coincide with the 50th anniversary of EU-ASEAN relations. The Philippine is the current chairman of the Association of Southeast Asian Nations.