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The Philippine Exporters Confederation, Inc. said the signing of the Comprehensive Economic Partnership Agreement between the Philippines and the United Arab Emirates is a major boost for the industry and the local economy
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PHILEXPORT said the agreement will “help Philippine exporters expand their presence in the Middle East and beyond, while creating new opportunities for investment, jobs, and inclusive growth at home”
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The CEPA also aligns with the country’s national export growth strategies by providing clearer rules, lower tariffs, and greater predictability for exports
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PHILEXPORT looks forward to working closely with government agencies, industry partners, and regional stakeholders to ensure the effective implementation of the CEPA and to maximize its benefits
The signing of the Comprehensive Economic Partnership Agreement (CEPA) between the Philippines and the United Arab Emirates (UAE) is a major boost for Philippine exporters, according to the Philippine Exporters Confederation, Inc. (PHILEXPORT).
The Philippines-UAE CEPA was signed on January 13, marking the Philippines’ first free trade deal in the Middle East.
“The UAE is not only one of our important export destinations but also a strategic hub for global trade,” PHILEXPORT president Sergio Ortiz-Luis Jr. said in a statement.
He said the agreement will “help Philippine exporters expand their presence in the Middle East and beyond, while creating new opportunities for investment, jobs, and inclusive growth at home.”
PHILEXPORT recognizes the UAE not only as a key export destination but also as a gateway to broader markets in the Gulf Cooperation Council, Africa, and beyond.
With nearly US$390 million in exports to the UAE last year and strong growth momentum into 2025, Ortiz-Luis said the agreement is expected to deepen market access, reduce barriers, and enhance competitiveness for Filipino exporters especially in key sectors and hubs such as electronics, food and agribusiness, machinery, and tropical fruits like bananas and pineapples and their value chains.
“This CEPA aligns with our national export growth strategies by providing clearer rules, lower tariffs, and greater predictability for exports”, said Ortiz-Luis.
Additionally, the agreement creates pathways for micro, small, and medium enterprises (MSMEs) “to scale up, compete internationally, and contribute to inclusive growth across Filipino communities.”
PHILEXPORT said it commends the government’s negotiating team for securing the agreement and looks forward to working closely with government agencies, industry partners, and regional stakeholders to ensure the effective implementation of the CEPA and to maximize its benefits for exporters and the Filipino people.
READ: PH, UAE free trade agreement to lower tariffs, enhance market access for PH exports
Under the CEPA, about 95% of Philippine exports to the UAE will enjoy preferential tariff treatment, helping manufacturers expand exports, scale up production, and generate more jobs at home.
Products that will benefit from the deal include personal care and cosmetic items (hair creams and deodorants), food products (bananas, pineapples, canned tuna, sardines, snacks, and condiments), electronic equipment (hair dryers, instant-print cameras, and parts of electrical machinery), automotive and aircraft parts, and textile and apparel products.
The Department of Trade and Industry (DTI) earlier said the CEPA also provides clearer and more predictable rules for businesses operating in key service sectors, including professional services, construction, retail, information technology-business process management, and tourism. This improved business environment supports expansion of Filipino service providers in the UAE and encourages UAE firms to invest in the Philippines.
DTI said the agreement goes beyond traditional trade by opening cooperation in priority areas such as digital trade, MSMEs, trade and sustainable development—covering the promotion and protection of labor and the environment—intellectual property rights protection and enforcement, competition and consumer protection, government procurement, and economic and technical cooperation.
Bilateral trade between the two nations reached nearly US$1.83 billion in 2024, with the UAE ranking 18th among the Philippines’ trading partners and accounting for nearly 39% of Philippine exports to the Middle East.
Preliminary studies indicate the CEPA could boost Philippine exports to the UAE by 9.13%, generate consumer savings, and strengthen overall trade linkages with the Gulf region.
The CEPA is expected to further complement the Philippines’ network of FTAs with Japan, South Korea, European Free Trade Agreement, and regional agreements within the Association of Southeast Asian Nations and trade partners, including the Regional Comprehensive Economic Partnership Agreement.
It added the deal will reinforce existing Philippines-UAE agreements, including the Investment Promotion and Protection Agreement and cooperation on trade, energy, logistics, innovation, and tourism, according to the Presidential Communications Office.
