Abu Dhabi, UAE—The Philippines marked a milestone in its foreign economic policy on Jan. 13 with the signing of the Comprehensive Economic Partnership Agreement, sealing the country’s first free trade deal in the Middle East and opening the door to smoother trade flows and deeper cross-border cooperation.
The agreement was signed by Department of Trade and Industry (DTI) Secretary Cristina A. Roque and United Arab Emirates (UAE) Minister of Foreign Trade Thani bin Ahmed Al Zeyoudi, in the presence of President Ferdinand R. Marcos Jr. and UAE President Mohamed bin Zayed Al Nahyan.
Secretary Roque said the Cepa reflects the administration’s strategy to use trade policy as a tool for long-term economic positioning.
“Following President Ferdinand R. Marcos Jr.’s directive, we are using strategic trade deals to move Philippine businesses into higher-value markets and more integrated supply chains. In doing so, the CEPA gives our 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,” she emphasized.
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. Benefiting products include personal care and cosmetic items (hair creams and deodorants), food products (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.
Moreover, the Cepa provides clearer and more predictable rules for businesses operating in key service sectors, including professional services, construction, retail, IT-BPM, and tourism. This improved business environment supports the expansion of Filipino service providers in the UAE and encourages UAE firms to invest in the Philippines.
The agreement also goes beyond traditional trade by opening cooperation in priority areas such as digital trade, MSME, 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.
In 2024, the UAE ranked among the Philippines’ top trading partners and served as a major export market in the Middle East, highlighting the significance of the CEPA’s wide-ranging cooperation framework as both countries move toward deeper trade, services, and investment integration.