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The free trade agreement signed by the Philippines and the United Arab Emirates today, January 13, will reduce tariffs and enhance market access for goods and services, increase investment flows, and create new opportunities for Filipino professionals and service providers in the UAE
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95% of PH exports will enjoy preferential tariff to the UAE under the Comprehensive Economic Partnership Agreement
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Products that will benefit include personal care and cosmetic items, food products, electronic equipment and parts of electrical machinery, automotive and aircraft parts, and textile and apparel products
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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
The free trade agreement signed by the Philippines and the United Arab Emirates (UAE) today, January 13, will reduce tariffs and enhance market access for goods and services, increase investment flows, and create new opportunities for Filipino professionals and service providers in the UAE, the Presidential Communications Office (PCO) said in a statement.
The Comprehensive Economic Partnership Agreement (CEPA) marks the Philippines’ first free trade deal in the Middle East. It was signed by Philippine Trade Secretary Cristina Roque and UAE Minister of Foreign Trade Thani bin Ahmed Al Zeyoudi, witnessed by President Ferdinand Marcos, Jr. and UAE President Mohamed bin Zayed Al Nahyan on the sidelines of the Abu Dhabi Sustainability Week 2026.
Marcos is on a one-day working visit to Abu Dhabi upon the invitation of the UAE President.
Negotiations for the CEPA began in May 2024 and was concluded in May 2025.
In a statement, Roque said CEPA gives Philippine exporters and service providers “a stable platform in the Middle East and sends a strong signal that the Philippines is open for deeper, rules-based economic partnerships.”
Under the agreement, 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) 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, micro, small, and medium-enterprises; 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, the PCO said.
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.
