PH, UAE INK HISTORIC FREE TRADE AGREEMENT

PRESIDENT Ferdinand R. Marcos Jr. witnessed on Tuesday the historic signing of a free trade agreement (FTA) between the Philippines and the United Arab Emirates (UAE) during his two-day working visit to Abu Dhabi.

Alongside UAE President Sheikh Mohamed bin Zayed Al Nahyan, President Marcos witnessed the signing and exchange of the Comprehensive Economic Partnership Agreement (CEPA), signed on behalf of the Philippines by Trade and Industry Secretary Ma. Cristina Roque at the sidelines of the Abu Dhabi Sustainability Week (ADSW) 2026 Summit held at the Abu Dhabi National Exhibition Center.

The CEPA is the Philippines’ first free trade pact with a Middle Eastern country, marking a milestone in expanding the nation’s global trade footprint.

The 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.

It also covers strategic sectors such as 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.

Bilateral trade between the two nations reached nearly US$1.83 billion in 2024, with the UAE ranking 18th among the Philippines’ trading partners and accounting for nearly 39 percent of Philippine exports to the Middle East.

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.

On services, the agreement ensures a stable, non-discriminatory environment for Filipino firms, including MSMEs, across sectors like IT-BPM, tourism, healthcare, education, construction, and professional services.

The CEPA is also expected to further complement the Philippines’ network of FTAs with Japan, South Korea, European Free Trade Agreement, and regional agreements within the Association of Southeast Asian Nations and trade partners, including the Regional Comprehensive Economic Partnership Agreement.

It will also reinforce existing Philippines-UAE agreements, including the Investment Promotion and Protection Agreement and cooperation on trade, energy, logistics, innovation, and tourism.

Also present during the signing ceremony were First Lady Louise Araneta-Marcos, Foreign Affairs Secretary Ma. Theresa Lazaro, Finance Acting Secretary Frederick Go, and Special Envoy to the UAE for Trade and Investment Kathryna Yu-Pimentel.

The signing ceremony was followed by a brief meeting between the two leaders, marking their second engagement since November 2024 and signaling a deepening partnership between Manila and Abu Dhabi.