It is the Southeast Asian country’s first deal with a Middle Eastern nation.
On Tuesday, January 13, President Ferdinand Marcos Jr. witnessed the signing of the free trade agreement (FTA)—the Comprehensive Economic Partnership Agreement (CEPA)—between the Philippines and the United Arab Emirates (UAE).
Marcos, who is there for a two-day working visit for the Abu Dhabi Sustainability Week, stood beside UAE President Sheikh Mohamed bin Zayed Al Nahyan. Signing on behalf of the Philippines was Trade and Industry Secretary Ma. Cristina Roque.
The CEPA is the Philippines’ first free trade pact with a Middle Eastern country, which is considered a milestone in expanding the nation’s global trade footprint.
Under the agreement, tariffs are to be reduced, thereby enhancing market access for goods and services.
It will also likely increase investment flows, and create new opportunities for Filipino professionals and service providers in the UAE in sectors like digital trade, MSMEs, sustainable development, intellectual property, competition and consumer protection, government procurement, and technical cooperation.
Philippine exports expected to benefit include bananas, pineapples, canned tuna, electronics, machinery, and other high-demand products, the Philippine government noted.
The CEPA will also reinforce existing agreements between the two nations—such as Investment Promotion and Protection Agreement and cooperation on trade, energy, logistics, innovation, and tourism.
“Preliminary 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,” the PH government shared.
In 2024, bilateral trade between the two nations reached nearly US$1.83 billion in 2024. This made the UAE rank 18th among the Philippines’ top trading partners and accounted for nearly 39 percent of Philippine exports to the Middle East.
Aside from the UAE, the Philippines also had FTAs with Japan, South Korea, as well as the European Free Trade Agreement, and regional agreements within the Association of Southeast Asian Nations and trade partners, including the Regional Comprehensive Economic Partnership Agreement.
