EXECUTIVE Secretary Ralph Recto on Friday hailed the free trade agreement (FTA) between the Philippines and the United Arab Emirates as “a huge step in expanding the Philippines’ global trade footprint.”
In a statement, Recto said: “This means more quality jobs for Filipinos, lower prices of goods, and more opportunities for businesses and professionals in the Philippines and in UAE.”
Signed on Jan. 13 in Abu Dhabi, the FTA — or the Comprehensive Economic Partnership Agreement (CEPA) — is the Philippines’ first free trade deal with a Middle Eastern country, opening doors to one of the world’s fastest-growing markets and deepening ties with the Gulf region.
Recto said the deal aims to cover 90-percent liberalization of tariff lines and trade value, expand market access for goods and services, and boost investments in the country.
“Filipino farmers and manufacturers stand to gain from improved access from key products such as bananas, pineapples, canned tuna, electronics and machinery, helping sustain livelihoods and support regional growth across the country,” Recto pointed out.
Moreover, workers in health care, construction, information technology, tourism, education and other industries are expected to gain from expanded and nondiscriminatory access to the UAE market.
The deal would likewise make it easier for Filipino entrepreneurs to compete and grow in global markets, with provisions supporting micro, small and medium enterprises, digital trade and technical cooperation.
Bilateral trade between the Philippines and the UAE reached nearly $1.83 billion in 2024, with the UAE accounting for almost 40 percent of Philippine exports to the Middle East.
Preliminary estimates suggest the FTA could further boost Philippine exports to the UAE by over 9 percent, and strengthen its existing network of FTAs with Japan, South Korea, the European Free Trade Association, the Association of Southeast Asian Nations and other partners, including those under the Regional Comprehensive Economic Partnership.
“It would also reinforce existing Philippines-UAE pacts, including the Investment Promotion and Protection Agreement,” Recto added.
Aside from the CEPA, the two countries signed an agreement on defense cooperation, which includes training, intelligence sharing, maritime security cooperation, anti-terrorism efforts and other initiatives, and support for the modernization of the Armed Forces of the Philippines.
President Ferdinand Marcos Jr. earlier said these agreements reflected the enduring strength of Philippine-UAE relations, anchored in decades of robust people-to-people connections and mutual cooperation.
“The Philippines will continue to enhance our bilateral ties with other countries with the goal of further strengthening our economy and ensuring peace and stability for the benefit of the Filipino people,” Marcos said.
Diplomatic relations between the Philippines and UAE formally began on Aug. 19, 1974, followed by the Philippine government’s opening a diplomatic mission in Abu Dhabi on June 17, 1980.
The UAE government inaugurated its diplomatic mission in the Philippines in November 1989.
