But a readout of the call between the two leaders said the EU and the Philippines were only “about to conclude talks on a Free Trade Agreement,” indicating that further negotiations would be needed to finalize the deal.

EU Trade Commissioner Maroš Šefčovič and Philippine Minister for Trade and Industry Maria Cristina Aldeguer-Roque said in a separate statement that they had reached “substantial agreement” that would set the deal “on a clear path towards its formal conclusion in the coming months.”

“Now the work turns to finishing the job,” Šefčovič told reporters on Tuesday in Brussels. “We have tasked our teams to formally conclude the agreement in the coming months so businesses and people on both sides can start feeling the benefits as soon as possible.” 

“Already now, we are keen to promote the deal because Southeast Asia is the region to be in. After Indonesia and now the Philippines, we are making strides with Thailand and engaging intensively with Malaysia,” he added.

News of the breakthrough was welcomed by France, which has in the past been skeptical toward trade deals that have exposed its powerful farming lobby to foreign competition. The EU runs a trade surplus with the Philippines in farm produce.

“This development is good news for our businesses and for our trade,” Trade Minister Nicolas Forissier told POLITICO, adding that France would remain vigilant. “Negotiations are not over, and France will be demanding: we will defend our strategic interests without making concessions on our sensitive sectors.”