As Manila and London expand economic cooperation, the Philippines signed a partnership unlocking up to £5 billion in UK-backed financing, equivalent to about ₱420 billion, The countries will identify government projects in connectivity, energy, digital infrastructure, and advanced manufacturing supply chains.
The financing will come through UK Export Finance (UKEF), with priority government projects selected over the coming months. The UK can also bring technical expertise and private investment through its role in the Luzon Economic Corridor.
Department of Finance Secretary Frederick Go said the partnership should generate jobs, stronger businesses, better infrastructure, and wider opportunities for Filipinos. UK Trade Minister Anas Sarwar said the framework should also create jobs and growth in both countries.
Trade officials also want greater use of the United Kingdom’s Developing Countries Trading Scheme (DCTS). The program cuts tariffs and simplifies rules, giving 92 percent of Philippine exports tariff-free UK access.
That coverage reaches 99 percent when measured by export value, yet Philippine DCTS utilization remains at 68 percent. Trade Undersecretary Allan Gepty cited limited awareness and rules-of-origin requirements as major barriers.
Bilateral trade reached $1.15 billion in 2025, down 2.5 percent from $1.18 billion in 2024. Philippine exports totaled $537.26 million, while imports from the UK reached $612.74 million.
Both governments plan trade promotion, business matchmaking, and technical exchanges to improve market access and DCTS use. They are also developing an agricultural cooperation agreement covering market access for key Philippine farm exports.
Further talks cover space, trade digitalization, and updating the double taxation agreement to strengthen investment ties. The UK also supports the Philippines’ bid to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. The bloc accounts for roughly 15 percent of global gross domestic product.
