Philippines inks FTA with UAE

THE PHILIPPINES and the United Arab Emirates (UAE) signed on Tuesday a landmark free trade agreement (FTA) which is expected to boost Philippine exports to the Gulf state by more than 9.13%, expand market access, and create new opportunities for Filipino professionals and businesses.

President Ferdinand R. Marcos, Jr. witnessed the signing of the Comprehensive Economic Partnership Agreement (CEPA) alongside UAE President Sheikh Mohamed bin Zayed Al Nahyan on the sidelines of the Abu Dhabi Sustainability Week 2026 Summit, according to a statement from Mr. Marcos’ office.

Trade Secretary Ma. Cristina A. Roque signed the pact on behalf of Manila, while UAE Minister of State for Foreign Trade Dr. Thani bin Ahmed Al Zeyoudi signed for the UAE.

The CEPA marks the Philippines’ first free trade deal with a Middle Eastern country, signaling a strategic push to broaden its global trade footprint.

The deal aims to reduce tariffs, increase investment flows and facilitate the participation of Filipino micro, small and medium enterprises across sectors, including information technology and business process management, healthcare, education, tourism and construction.

The agreement also covers digital trade, sustainable development, intellectual property, competition and consumer protection, government procurement, and technical cooperation.

Among key Philippine exports expected to benefit are bananas, pineapples, canned tuna, electronics and machinery.

Bilateral trade between Manila and Abu Dhabi reached nearly $1.83 billion in 2024. The UAE ranked as the Philippines’ 18th largest trading partner and accounts for almost 39% of Philippine exports to the Middle East.

The CEPA is expected to complement Manila’s existing network of trade agreements with Japan, South Korea, the European Free Trade Association, and the Association of Southeast Asian Nations, as well as the Regional Comprehensive Economic Partnership.

It will also reinforce prior bilateral agreements, including the Investment Promotion and Protection Agreement.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the new deal is significant as the Middle East is a “very promising market” due to the region’s affluence.

“This could provide a more conducive environment for further diversification of Philippine export market to more affluent markets around the world, especially the untapped ones through optimization of FTA opportunities, as well as supportive of the further diversification of more Philippine export products/winners, such as tropical fruits and other agricultural products,” he said via Facebook Messenger.

The Philippines and the UAE established diplomatic relations in 1974.

First Lady Louise Araneta-Marcos, Foreign Affairs Secretary Ma. Theresa P. Lazaro, Acting Finance Secretary Frederick D. Go, and Special Envoy to the UAE for Trade and Investment Kathryna Yu-Pimentel also attended the signing. — Chloe Mari A. Hufana