THE newly signed free trade agreement (FTA) between the Philippines and the United Arab Emirates (UAE) is a “landmark step“ in expanding trade, investment, and global market access for the country, the Philippine Chamber of Commerce and Industry (PCCI) said on Tuesday.
The deal — formally known as the Comprehensive Economic Partnership Agreement — was signed Jan. 13 by Trade Secretary Cristina Roque and UAE Minister of Foreign Trade Thani bin Ahmed Al Zeyoudi, in the presence of President Ferdinand Marcos Jr. and UAE President Mohamed bin Zayed Al Nahyan.
“The UAE serves not only as a major destination for Philippine exports but also as a global gateway linking Asia, the Middle East, Africa, and Europe. Exporters, investors, and micro, small and medium enterprises (MSMEs) now have a stronger platform to grow,” PCCI President Perry Ferrer said in a statement, adding that the FTA will help diversify the Philippines’ trade partnerships and reduce reliance on a limited number of traditional export markets.
The FTA aims to reduce tariffs, enhance market access for goods and services, increase investment flows, and create new opportunities for Filipino professionals and businesses.
It covers digital trade, MSMEs, sustainable development, intellectual property, competition and consumer protection, government procurement, and technical cooperation.
About 95 percent of the country’s exports to the UAE will be granted preferential tariff treatment, the Department of Trade and Industry said.
This means lower tariffs will be imposed on local goods, including personal care and cosmetic items, food products, electronic equipment, automotive and aircraft parts, and textiles and apparel.
The agreement will also open new business opportunities for manufacturing, construction materials, and digital and professional services, enabling Filipino service providers in information and communication technology, business process outsourcing, health care, and tourism to compete under more predictable and non-discriminatory conditions.
The PCCI commended the provisions for MSMEs. “Finally, we have an agreement that will allow our small businesses to export products, offer services, and partner with UAE companies more easily,“ Ferrer said.
The implementation of the agreement must be through clear rules, trade facilitation, and active business engagement, the PCCI stressed while reaffirming its commitment to work with government partners in promoting the FTA and helping Filipino firms translate this milestone into concrete export growth, investment flows, and job creation.
In 2024, trade between the Philippines and the UAE totaled $1.83 billion, and Philippine exports to the UAE reached $390.4 million. The UAE ranked 18th among the country’s largest trading partners, according to the Philippine Statistics Authority (PSA).
Citing preliminary studies, the government estimates exports to the UAE would grow by 9.13 percent or $2 billion, based on 2024 levels.
The CEPA is expected to generate $30.74 million in total trade gains, providing $0.62 million in consumer savings through easier imports.
The country currently has FTAs with Japan, South Korea, and the European Free Trade Association (EFTA), as well as regional agreements with the Association of Southeast Asian Nations (Asean) and its trade partners, and the Regional Comprehensive Economic Partnership (RCEP).
