The Philippines and the United Arab Emirates (UAE) signed the terms of reference (TOR) for the
proposed Comprehensive Economic Partnership Agreement (CEPA) on Dec. 2, 2023.
The TOR outlines the areas where the two countries have similar interests and aims to expand trade
between them, said Trade Secretary Alfredo Pascual in a press briefing Monday.
Pascual said the TOR is the first step towards a bilateral FTA with the UAE and will provide guidelines for the conduct of negotiations, as well as the scope and coverage of the proposed CEPA.
The CEPA is envisioned to boost exports of goods and services to the UAE and the wider Gulf region,
attract more investments from the UAE, and create more opportunities for Filipino professionals and
service providers in the UAE.
The CEPA with the UAE aligns with the Philippines’ trade strategy to enter new markets as outlined in the
Philippine Development Plan (PDP) 2023-2028 and the Philippine Export Development Plan (PEDP)
2023-2028.
Special Envoy of the President to the UAE for Trade and Investments Norman Vincent Wee, during a
recent trip to the UAE, emphasized the Emiratis’ positive perception of Filipinos.
“They have welcomed our countrymen in their businesses and homes, and consider us their closest
country in Asia,” Wee said. “In the last few years, the UAE has been investing in other developing
countries, and the Philippines has to take advantage of this trend so that more than just a destination for
our OFWs, UAE can become a source of investment funds and financing.”
He noted that Emirati investments tend to be long-term and sustainable.
UAE investors are eyeing sectors with immense potential for growth in the Philippines, such as
renewable energy, ports and logistics, food security, digitalization and data centers.
“To capitalize on this, bilateral agreements signal our openness to their investments and leverage the
strong ties established by our OFWs,” Wee said.
“Secretary Pascual’s recent trip to the UAE has been
instrumental, particularly in securing the ratification of the IPPA and the signing of the CEPA. The
Philippines is on the UAE’s shortlist of investment countries, with our 115 million population and young
demographics.”
The UAE is the Philippines’ 17th largest trading partner and the top export market among all Gulf
Cooperation Council member states. The UAE is also the second home to one of the largest populations
of overseas Filipinos in the Middle East, as well as well-known and home-grown Filipino brands and
businesses.
Bilateral trade reached $1.84 billion, in favor of the UAE, with total exports of $1.21 billion while the
Philippines exports $315.21 million to the UAE.
