PHL to begin trade deal discussions with UAE
THE PHILIPPINES has agreed with the United Arab Emirates (UAE) to undertake preliminary activities ahead of formal discussions for a trade deal, the Department of Trade and Industry (DTI) said.
In a statement Thursday, the DTI said Trade Secretary Ramon M. Lopez met with the UAE’s Ministers of State and Foreign Trade, Ahmed bin Ali Al Sayegh and Thani bin Ahmed Al Zeyoudi, respectively, on Dec. 8 during the Global Business Forum ASEAN hosted at Expo 2020 Dubai.
Following the meeting, the DTI said the UAE has agreed to start scoping discussions with the Philippines on a possible comprehensive economic partnership agreement (CEPA).
“Both governments recognize the large potential to expand bilateral trade and investment relations and are working towards the finalization of key agreements that will pave the way for the start of the broader CEPA negotiations,” Mr. Lopez said.
Asked to comment, Mr. Lopez told BusinessWorld by mobile phone that trade talks between the two countries should begin by February.
“Trade talks to start by February. (There’s) a possibility to complete (talks) within three months,” Mr. Lopez said.
Mr. Lopez said the CEPA will build on a proposed Memorandum of Understanding (MoU) on Economic and Technical Cooperation and an Investment Promotion and Protection Agreement (IPPA), talks for which are ongoing.
“Given our economic complementarities and the strong ties between our peoples, we are optimistic that the proposed CEPA with UAE will redound to mutual benefits and will play an important role in accelerating the growth trajectory of the Philippine economy,” Mr. Lopez said.
The MoU allows for the creation of a joint economic commission which will facilitate the implementation of cooperation initiatives on trade and investment, particularly in areas such as agribusiness, manufacturing, renewable energy, real estate development, logistics, transportation, communication, tourism, technology, and innovation.
“In addition, the Philippines-UAE IPPA is expected to further deepen economic relations between the two countries by creating favorable conditions for investments and stimulating business initiatives while ensuring that the interests and sensitivities of both parties are protected,” Mr. Lopez said.
According to the DTI, the IPPA seeks to promote and facilitate UAE investment in the Philippines in key sectors like agribusiness, energy efficiency technologies and renewable energy, infrastructure, information technology and business process management (IT-BPM), oil & gas, and tourism.
Meanwhile, DTI said net foreign direct investment from the UAE during the first nine months of 2021 totaled $2.43 million, against the $1.18 million tallied for 2020.
It added that the UAE is the second-largest destination of overseas Filipinos in the Middle East, after Saudi Arabia.
“The UAE hosts known Philippine franchise brands and over a thousand Filipino-owned businesses, covering diverse sectors of food and beverage, trading and logistics, consultancy and other creative services, education and training, and hospitality services, among others,” the DTI said. — Revin Mikhael D. Ochave