A landmark economic partnership is on the horizon for the Philippines and the United Arab Emirates, poised to reshape trade relations between the two nations. A Comprehensive Economic Partnership Agreement (CEPA) is scheduled for signing in January, marking a pivotal moment for Philippine commerce.
President Ferdinand R. Marcos, Jr. will lead a delegation to the UAE in mid-January to finalize the agreement. This CEPA will represent the Philippines’ inaugural free-trade agreement with a country in the Middle East, opening doors to unprecedented opportunities.
Beyond the signing ceremony, the delegation intends to actively court investment from UAE-based companies. A key focus will be attracting businesses to establish manufacturing operations within the Philippines, bolstering the nation’s industrial capacity.
The UAE already holds a significant position as the Philippines’ 18th largest trading partner and stands as the premier export destination within the Gulf Cooperation Council. Current exports include vital components like electrical equipment, essential food products, and crucial materials such as iron, steel, and mineral fuels.
Negotiations for this CEPA began in 2022, driven by the ambition to broaden market access for Philippine goods and stimulate increased investment from UAE enterprises. The agreement promises a more favorable landscape for Philippine businesses seeking to expand their reach.
The Philippines isn’t limiting its focus to the UAE; parallel efforts are underway to forge new trade agreements with Chile and the European Union in the coming year. These initiatives demonstrate a proactive strategy to diversify and strengthen economic ties globally.
Discussions with the EU trade minister in Davos earlier this year proved productive, paving the way for renewed momentum in pursuing a free trade agreement. The President has voiced strong support for these endeavors, recognizing the critical role of FTAs in reducing tariffs and enhancing the Philippines’ competitive edge on the world stage.
