The Philippines is actively working to finalize negotiations on the proposed Philippines-United Arab Emirates Comprehensive Economic Partnership Agreement (PH-UAE CEPA) by end-2024, according to the Department of Trade and Industry (DTI).
“We have agreed with the UAE to conclude negotiations within the year. We’re targeting October or November,” said Trade Undersecretary for international trade Allan Gepty during a June 28 online stakeholder consultation.
The PH-UAE CEPA is a proposed free trade agreement (FTA) designed to enhance trade and investment relations between the Philippines and the UAE. Its goal is to facilitate the export of goods and services, boost investment prospects and open up more opportunities for Filipino professionals and service providers in the UAE and the broader Gulf region.
If successful, the Philippines-UAE CEPA will mark the Philippines’ first FTA with a GCC member state and the entire Middle East region, as well as its fourth bilateral FTA overall.
Both countries agreed to expedite the consultations and planned four full rounds of face-to-face negotiations, supplemented by virtual meetings.
The first round, held in May 2024, laid the groundwork for the upcoming second round, scheduled for July 8 to 10 in Manila, which will focus on market access negotiations.
After signing the terms of reference (TOR) in December 2023, which marked the initial step toward the FTA, both countries have been diligently working toward its successful conclusion. The TOR sets out the guidelines and scope of the CEPA.
The CEPA aligns with the Philippines’ trade strategy to explore new markets, as outlined in the Philippine Development Plan 2023-2028 and the Philippine Export Development Plan 2023-2028.
Working groups were established to negotiate specific chapters of the TOR, covering trade in goods, rules of origin, trade in services, digital trade, customs procedures and trade facilitation, investment, intellectual property rights and trade and sustainable development.
The UAE is a promising market for Filipino products like halal-related items, tropical fruits, garments and high-end consumer goods. It’s also home to a large number of overseas Filipinos and well-known Filipino brands and businesses.
The UAE was the Philippines’ 18th largest trading partner with bilateral trade reaching $1.88 billion in 2023, including exports valued at $341.97 million and imports at $1.54 billion.
