MANILLA
\nThe Philippines signed on Tuesday a comprehensive economic partnership agreement with the UAE, its first such deal with a Middle Eastern nation. The Philippines and the UAE first agreed to explore a free trade pact in February 2022 and formalized the process with terms of reference in late 2023. Negotiations started in May 2024 and were finalized in 2025. The CEPA signing was witnessed by President Ferdinand R. Marcos Jr. who led the Philippine delegation to Abu Dhabi.
\n\u201cThe CEPA is the Philippines\u2019 first free trade pact with a Middle Eastern country, marking a milestone in expanding the nation\u2019s global trade footprint,\u201d Marcos\u2019s office said. \u201cThe agreement aims to reduce tariffs, enhance market access for goods and services, increase investment flows, and create new opportunities for Filipino professionals and service providers in the UAE.\u201d
\nThe UAE is home to some 700,000 Filipinos, the second-largest Filipino diaspora after Saudi Arabia.
\nWith bilateral trade worth about $1.8 billion, it is also a key trading partner of the Philippines in the Middle East, and accounted for almost 39 percent of Philippine exports to the region in 2024.
\nThe Philippine Department of Trade and Industry earlier estimated it would lead to at least 90 percent liberalization in tariffs and give the Philippines wider access to the GCC region.
\n\u201cPreliminary studies indicate the CEPA could boost Philippine exports to the UAE by 9.13 percent, generate consumer savings, and strengthen overall trade linkages with the Gulf region,\u201d Marcos\u2019s office said.
\nThe Philippine Chamber of Commerce and Industry-Makati expects the pact to bring stronger trade flows, capital and technology for renewable energy, infrastructure, food, and water security projects as long as domestic policy supports it.
\n\u201cCEPA can serve as a trade accelerator and investment catalyst for the Philippines,\u201d Nunnatus Cortez, the chamber\u2019s chairman, told Arab News.
\nThe pact could result in \u201cexpanding exports, attracting capital, diversifying economic partners, upgrading industries, and supporting long-term growth \u2014 provided the country actively supports exporters and converts provisions into concrete commercial outcomes,\u201d said Cortez.
\n\u201cThe main downside risk of CEPA lies in domestic readiness. Without strong industrial policy, MSME (Micro, Small and Medium Enterprises) support, safeguard mechanisms, and export development, CEPA could lead to import dominance, uneven gains, fiscal pressure, and limited structural transformation.\u201d
\nThe deal with the UAE is the Philippines\u2019 fourth bilateral free trade pact, following agreements with South Korea, Japan, and the European Free Trade Association, which comprises Iceland, Liechtenstein, Norway, and Switzerland.<\/p>\n","protected":false},"excerpt":{"rendered":"
MANILLA The Philippines signed on Tuesday a comprehensive economic partnership agreement with the UAE, its first such deal with a Middle Eastern nation. The Philippines and the UAE first agreed to explore a free trade pact in February 2022 and formalized the process with terms of reference in late 2023. Negotiations started in May 2024 […]<\/p>\n","protected":false},"author":2,"featured_media":525475,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":{"0":"post-525457","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-world"},"yoast_head":"\n