The European Union and the Philippines have reached a substantial political agreement on a free-trade pact designed to reduce tariffs and deepen investment ties. The agreement is not yet in force: negotiators must finish technical work before it can be signed and submitted for the parties' formal approval procedures.

The European Commission said the planned deal would liberalize more than 94% of tariff lines, covering about 97% of bilateral trade. It also includes provisions on services, digital trade, intellectual property, government procurement and sustainable development.

Officials described the accord as part of a wider effort to diversify supply chains and strengthen economic links between Europe and Southeast Asia. The final legal text and ratification process will determine when the commitments begin to apply.

Sources: European External Action Service — eeas.europa.eu source ↗ European Commission — luxembourg.representation.ec.europa.eu source ↗ Associated Press — apnews.com source ↗