The Philippines and Germany have called for the swift conclusion of a long-awaited Free Trade Agreement (FTA) between the European Union and the Philippines, citing expectations of stronger investment flows and expanded economic opportunities for European and German firms.
President Ferdinand Marcos Jr. and German President Frank-Walter Steinmeier made the appeal following their bilateral meeting in Malacañang, where both leaders underscored the importance of advancing economic cooperation amid growing global trade realignments.
Steinmeier, who arrived in Manila for a state visit on Monday night, is the first German head of state to visit the Philippines since 1963, when then President Heinrich Lübke made an official trip to Manila.
Marcos said Germany has been a consistent supporter of efforts to fast-track the EU–Philippines FTA, with the next round of negotiations scheduled for May 18 to 22. He said the agreement is expected to deepen trade ties and attract more European investments into the country.
“We hope that that agreement can be concluded speedily and that our economic exchange will continue to intensify so that we will see more European, and in particular more German investments, in the Philippines,” Steinmeier said.
Germany remains one of the Philippines’ key economic partners in Europe, with about 300 member companies operating under the German-Philippine Chamber of Commerce and Industry, spanning sectors such as pharmaceuticals, banking, insurance, logistics, and aviation.
Government data cited by the Presidential Communications Office (PCO) showed that as of September 2025, at least 40 German-affiliated companies are registered in the Philippines, including major firms such as Lufthansa Technik, Bayer, Merck, Boehringer Ingelheim, and Linde.
The PCO also noted that Germany is the Philippines’ ninth-largest source of official development assistance, providing US$46.95 million in support, or 2.41 percent of the country’s total grants portfolio.
On the sidelines of the state visit, both leaders witnessed the signing of a lease agreement between the Bases Conversion and Development Authority (BCDA) and Lufthansa Technik Philippines, marking a new phase in aviation cooperation between the two countries.
Under the agreement, Lufthansa Technik Philippines will develop a 157,000-square-meter maintenance, repair, and overhaul (MRO) facility at Clark International Airport, a project expected to strengthen the country’s position in the regional aviation services industry.
Officials said the investment underscores growing confidence in the Philippines as a strategic hub for aerospace maintenance and broader European business expansion in Southeast Asia.
The developments formed part of broader discussions aimed at expanding bilateral cooperation in trade, infrastructure, and high-value industries as both countries seek to deepen economic engagement in the coming years.