The Philippines-Chile CEPA is negotiated but not yet in force. The two governments concluded talks on the Comprehensive Economic Partnership Agreement in July 2026, and the signature is still pending. Even before it takes effect, the agreement sends a clear signal to the business community: Southeast Asia and Latin America are building direct trade links, and companies on both sides have a new reason to look at each other’s markets.
The agreement is a first in both directions. It is the Philippines’ first free trade agreement with a Latin American country, and Chile becomes the first country in the region to reach a trade agreement with the Philippines, according to the Chilean government’s announcement.
The deal is closed at the negotiating table. The business opportunity starts with the companies that prepare before it takes effect.
Where the Philippines-Chile CEPA stands today
The two countries launched negotiations in Manila on 6 December 2024, when Philippine Trade Secretary Cristina Roque and then Chilean Foreign Minister Alberto van Klaveren signed a joint statement, as reported by the Philippine Department of Trade and Industry. After more than a year of talks, Secretary Roque and Chilean Foreign Minister Francisco Pérez Mackenna announced the conclusion of negotiations in Manila in July 2026, in the year that marks 80 years of diplomatic relations.
The signature was originally expected in September and was moved to allow for legal review. The Philippine side has indicated that it aims to sign in October, before November at the latest, with entry into force expected early next year, according to Manila Bulletin. After signature, each country must still complete its domestic approval process, so the final date may move.
- Dec 2024Negotiations launched in Manila
- Jul 2026Negotiations concluded
- Oct 2026Target date for signature
Pending - 2027Expected entry into force, after ratification
What the agreement covers
The tariff offer is broad. According to Chile’s Ministry of Foreign Affairs, Chilean exports will receive preferential treatment on more than 10,467 tariff lines, covering about 90% of the current value of Chilean exports to the Philippines. Philippine exports will receive preferences on about 8,632 tariff lines, covering 99% of the value of Chilean imports from the Philippines.
Source: Chilean Ministry of Foreign Affairs, 2026
The Philippines-Chile CEPA goes beyond tariffs. Public statements from both governments refer to rules on trade in services and investment, the digital economy, global value chains, environment, labour, and trade and gender. In practice, that means lower or zero tariffs for most goods, clearer and more predictable rules for companies that want to invest or set up operations in the other country, and provisions for e-commerce and digital services.
The detailed schedules, including phase-out periods and product exclusions, will matter more to each company than the headline figures, and should be reviewed once the final text is published.
Why the agreement matters for business
Bilateral trade is still modest, which is precisely why the agreement matters. In 2024, Chilean exports to the Philippines reached about US$263 million, while Philippine exports to Chile were about US$64 million. The relationship has grown, but it remains small compared with the size of both economies and the distance it has to cover.
Trade is also concentrated in a few products. Copper ore accounts for most of Chile’s sales to the Philippines and is a relevant input for the Philippine electronics industry. Philippine exports to Chile are led by electronics and office machine parts, coconut products and personal care goods. A broader agreement creates room to diversify that basket.
For Chilean companies
- A first preferential entry point into a market of more than 110 million people
- Better price position for agri-food, seafood, wine and mineral products
- A base to explore ASEAN, alongside existing agreements in Asia
For Philippine companies
- Preferential access to an open, high-income Latin American market
- Opportunities for electronics, coconut products, personal care and processed foods
- A reference market for wider expansion into Latin America
The timing is also significant. The Philippines is accelerating its trade diversification, with negotiations involving the European Union, the United Arab Emirates and Chile among its priorities for 2026. Chile, for its part, continues to expand a trade network that already reaches economies on every continent. For both countries, the CEPA is part of a wider strategy to reduce dependence on a few markets and open new routes for exporters and investors.
- Agri-food and seafood
- Copper and minerals
- Electronics and semiconductors
- Coconut products
- Personal care
- Services and digital trade
A bridge between Southeast Asia and Latin America
The value of the agreement is not limited to bilateral trade between two distant markets. The Philippines is part of ASEAN and RCEP, while Chile participates in APEC, the CPTPP and the Pacific Alliance. For companies that plan carefully, each country can become a reference market and a starting point for its wider region.
That does not mean a single office in Manila or Santiago will automatically open the rest of the region. Each market keeps its own regulations, buyers and competitors. The agreement lowers some barriers between the two countries, but regional expansion still requires a clear sequence and a local plan for each market.
Timing also creates an advantage. Many Latin American competitors still trade with the Philippines without preferential access, and Philippine suppliers will compete in Chile with Asian exporters that already know the market. Companies that position themselves early can build relationships while others are still assessing the opportunity.
A tariff preference is not market access on its own. Companies still need distribution, registrations, rules-of-origin compliance and buyers who know their product.
What companies should do now
The months before the Philippines-Chile CEPA enters into force are useful for groundwork. Exporters can confirm the HS codes of their products, check the current tariff they face and estimate the margin gained once preferences apply. They should also understand the rules of origin, because only goods with a valid certificate of origin will be able to claim preferences.
Market validation matters as much as tariffs. Distance, logistics costs, product registration and buyer expectations differ significantly between Southeast Asia and Latin America. Early conversations with importers, distributors and industry associations help a company test whether demand exists at a viable price before investing in a launch.
Until the agreement is signed and ratified, companies should also follow its progress closely. The final legal text, the tariff schedules and the date of entry into force will confirm which products benefit, from when and under which conditions. Companies that start now can arrive with qualified contacts, a clear landed price and a partner ready to act when preferences apply.
How Gedeth supports companies between Asia and Latin America
Gedeth Network helps companies turn new trade agreements into concrete commercial plans. Through market research, internationalization planning, B2B agendas with qualified buyers and trade missions, we support exporters and investors in assessing demand, selecting the right entry model and preparing for market entry before preferences take effect.