The Philippines has signed a tourism agreement with Chile and advanced plans for its first free trade deal with a Latin American nation, moves that reflect Manila’s broader push to widen its diplomatic and economic ties as global trade grows increasingly unpredictable.
Philippine Foreign Affairs Secretary Ma. Theresa Lazaro travelled to Santiago, where she held meetings with Chilean President José Antonio Kast Rist and Foreign Minister Francisco Pérez Mackenna.
Discussions centred on trade, maritime cooperation and consular matters, and the trip coincided with celebrations marking 80 years since the two countries established diplomatic relations on 4 July 1946.
The Philippines’ first bilateral pact with a Latin American country
At the centre of the renewed relationship is the Philippines-Chile Comprehensive Economic Partnership Agreement (CEPA), expected to take effect in 2027.
It will be the Philippines’ first bilateral free trade agreement with a Latin American country. For Chile, which already maintains an extensive network of trade arrangements, it would be the 37th such deal in its portfolio.
Lazaro described the agreement in expansive terms during her meeting with Pérez, saying it would “leave the gates wide open for immense trade and investment opportunities, making our two countries more interconnected and interdependent than ever before,” as reported by the Philippine News Agency.
The timing is notable, as both governments are pursuing the deal while geopolitical tensions and disrupted supply chains push countries to widen their circle of trading partners rather than rely on a small number of traditional relationships.
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On tourism and people-to-people ties
Lazaro also signed a memorandum of understanding on tourism, intended to deepen cooperation between the two countries’ tourism authorities and expand people-to-people exchanges, covering areas from diving and gastronomy to educational and sports tourism.
The Department of Tourism has described Chile as a “small but recovering source market,” with arrivals reaching 1,451 by mid-August this year, a 7.16 per cent increase, though the market has yet to fully recover to pre-pandemic levels.
Lazaro also paid a courtesy call on Kast at the Palacio de La Moneda, conveying greetings from President Ferdinand Marcos Jr and extending an invitation for the Chilean leader to visit the Philippines.
“The Pacific Ocean does not separate us; it links our destinies,” Lazaro told Chilean officials.
Roughly 1,017 Filipinos were living in Chile at the end of 2025, and tourism flows between the two nations remain a fraction of the Philippines’ totals.
But for a government seeking security against volatility in its more established trading relationships, the agreement with Chile is a calculated bet that distant ties may prove useful precisely because they are new.
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