Philippines signs historic free trade deal with UAE

ABU DHABI, UAE — The Philippines marked a major milestone in its foreign economic policy with the signing of the Comprehensive Economic Partnership Agreement on Jan. 13, becoming the country’s first free trade agreement with a Middle East partner.

The agreement aims to secure smoother trade flows and create a high-growth environment through expanded market integration and stronger cross-border cooperation between the Philippines and the United Arab Emirates.

The CEPA was signed by Department of Trade and Industry Secretary Cristina A. Roque and UAE Minister of Foreign Trade Thani bin Ahmed Al Zeyoudi, in the presence of President Ferdinand R. Marcos Jr. and UAE President Mohamed bin Zayed Al Nahyan.

Roque said the agreement reflects the Marcos administration’s strategy of using trade policy as a tool for long-term economic positioning and deeper global integration.

“Following President Ferdinand R. Marcos Jr.’s directive, we are using strategic trade deals to move Philippine businesses into higher-value markets and more integrated supply chains. In doing so, the CEPA gives our exporters and service providers a stable platform in the Middle East and sends a strong signal that the Philippines is open for deeper, rules-based economic partnerships,” she emphasized.

Under the agreement, about 95 percent of Philippine exports to the UAE will receive preferential tariff treatment, a move expected to help manufacturers expand exports, scale up production, and generate more jobs in the Philippines.

Products expected to benefit include personal care and cosmetic items such as hair creams and deodorants, food products like canned tuna, sardines, snacks, and condiments, electronic equipment including hair dryers, instant-print cameras, and parts of electrical machinery, as well as automotive and aircraft parts, and textile and apparel products.

The CEPA also establishes clearer and more predictable rules for businesses in key service sectors, including professional services, construction, retail, information technology and business process management, and tourism.

This improved business environment is expected to support the expansion of Filipino service providers in the UAE while encouraging Emirati firms to invest more actively in the Philippine economy.

Beyond traditional trade, the agreement opens cooperation in priority areas such as digital trade, micro, small, and medium enterprises, trade and sustainable development, labor and environmental protection, intellectual property rights protection and enforcement, competition and consumer protection, government procurement, and economic and technical cooperation.

In 2024, the UAE ranked among the Philippines’ top trading partners and served as a major export market in the Middle East, underscoring the significance of the CEPA as both countries move toward deeper integration in trade, services, and investments.