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EU-Philippines trade: GSP+, REX and the new trade agreement

The Philippines has had enhanced EU trade preferences under GSP+ since December 2014, and on 22 September 2026 the EU and the Philippines reached substantial agreement in their free trade negotiations. For Philippine exporters, that means many products can already enter the EU duty-free if the rules of origin are met and the right proof is provided. Here is how it works in practice and what to prepare.

By Hiram Trade Editorial Desk

Published

6 min read

What the Philippines sells to the EU

Philippine exports to the EU are diversified. Reporting on GSP+ describes the core as vegetable oils and fats (above all coconut oil), electrical and electronic equipment, and foodstuffs. Examples of product groups that Philippine exporters offer to EU buyers:

  • coconut products: crude and refined coconut oil, virgin coconut oil, desiccated coconut, coconut milk and water;
  • processed foods, such as dried and preserved fruit and canned fish;
  • electronic and electrical components;
  • natural-fibre products, furniture and home decor.

Use Access2Markets to check the duty rate and import requirements for your exact product.

GSP+ in brief

The EU's Generalised Scheme of Preferences (GSP) has three tiers. GSP+ is the special tier for countries that have ratified and effectively implement 27 core international conventions on human and labour rights, environmental protection and good governance. The Philippines is regularly monitored on these commitments.

According to the European Commission, GSP+ grants full removal of tariffs on two thirds of all product categories. The Commission also reports that in 2023, 73% of Philippine exports to the EU that were eligible for GSP+ preferences actually entered at preferential rates. The rest paid duty they could have avoided, typically because of missing or incorrect proof of origin or because the origin rules were not met.

For exporters, that gap is a practical opportunity: getting origin paperwork right can make your offer cheaper for the EU buyer at no cost to you.

The current GSP regime (Regulation (EU) No 978/2012, with 27 core conventions) applies until 31 December 2026. Regulation (EU) 2026/1395 applies from 1 January 2027 and repeals Regulation (EU) No 978/2012 from that date; the new regime expands the list of international conventions that beneficiary countries must respect. What follows also depends on the entry into force of the free trade agreement. Check the Commission's pages for the current position.

Rules of origin and the REX system

Preferences apply only to goods that originate in the Philippines under the GSP rules. For agricultural products this usually means wholly obtained in the Philippines; for processed goods, sufficient processing under the rule for the relevant tariff heading. Transhipment or simple repacking does not confer origin.

Proof of origin under the GSP is a statement on origin under the REX system:

  • the exporter registers in REX; in the Philippines, the Bureau of Customs handles registration;
  • the registered exporter makes out the statement on origin on the invoice or another commercial document;
  • for consignments above EUR 6,000, the statement must come from a REX-registered exporter; below that, any exporter can make it out;
  • the EU importer claims the preference in the customs declaration and should check the exporter's REX number.

Many EU buyers will ask for your REX number before placing a first order. If you do not have one, register before you start quoting.

The free trade agreement: status in September 2026

Negotiations started in December 2015, paused after 2017 and resumed in March 2024. On 22 September 2026 the Commission announced that the two sides had reached substantial agreement. That does not mean the agreement applies yet: the text still has to be finalised, signed and ratified, and press reports indicate some issues, including public procurement, remain open.

Until the agreement enters into force, trade continues on current terms, including GSP+. The agreement will have its own rules of origin and proof of origin, which may differ from GSP. Follow the Commission's publications before changing your procedures.

Practical steps for Philippine exporters

  1. Confirm your HS code and check the EU duty rate and GSP+ rate in Access2Markets or TARIC. Our guide to HS and CN codes explains the structure.
  2. Check the origin rule for your heading and document how your product meets it (raw material sources, processing steps).
  3. Register in REX with the Bureau of Customs.
  4. Check EU product requirements: food safety, contaminants, labelling, packaging, and any certificates your buyers expect (for example food safety management or organic certification).
  5. Prepare your company file: SEC or DTI registration, sector registrations (for coconut products, the Philippine Coconut Authority), bank details on company letterhead, recent certificates of analysis, references.
  6. Get support: the DTI Export Marketing Bureau supports Philippine exporters with market information and promotion.
  7. Quote in the buyer's terms: Incoterms 2020 with a precise place, clear payment terms and validity. See our guide to finding buyers in the EU.

Things to plan for

  • Transit time: sea freight from the Philippines to Europe takes several weeks, and transhipment in Asian hubs can add more. Quote delivery windows with a margin.
  • Climate and product: humidity and heat affect agricultural products and oils. Use packing that protects the goods.
  • Documents in advance: send scans of the full document set before the vessel arrives so the buyer's customs broker can prepare.
  • Currency: most offers are in USD; EU buyers may ask for EUR pricing.

Philippine suppliers on Hiram

On Hiram, EU buyers post requests and Philippine exporters can respond with quotes that buyers compare on total landed cost. For a product-specific example, see our guide to importing coconut oil from the Philippines.

To reach EU buyers with structured quotes, register on Hiram.

Sources

This article is for information only and is not legal, tax or customs advice. Rules and rates change: check the current official sources or consult an adviser before you decide.

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