Malacañang said Friday the historic free trade agreement between the Philippines and the United Arab Emirates (UAE) is expected to generate more jobs, reduce consumer prices, and open wider opportunities for Filipinos.
Executive Secretary Ralph Recto said the Comprehensive Economic Partnership Agreement (CEPA) marks the Philippines’ first free trade agreement with a Middle Eastern country, opening access to one of the world’s fastest-growing markets and deepening ties with the Gulf region.
“Isa itong malaking hakbang para palawakin ang global trade footprint ng Pilipinas. Para sa bawat Pilipino, ang ibig sabihin nito ay mas maraming dekalidad na trabaho, mas abot-kaya ang presyo ng bilihin, at mas maraming oportunidad para sa ating mga negosyo at propesyonal (This is a big step in expanding the Philippines’ global trade footprint. To every Filipino, this would mean more quality jobs, more affordable commodity prices, and more opportunities for businesses and professionals),” Recto said in a statement.
The CEPA will reduce tariffs, expand market access for goods and services, boost investments, and create opportunities for Filipino professionals in high-demand sectors.
Recto noted that the trade deal with the UAE targets at least 90 percent liberalization of tariff lines and trade value.
He said Filipino farmers and manufacturers would benefit from improved access for key products, such as bananas, pineapples, canned tuna, electronics, and machinery, helping sustain livelihoods and support regional growth across the country.
Recto noted that the agreement would also expand non-discriminatory access for Filipino professionals and workers in such sectors as healthcare, construction, information technology, tourism, and education, providing a more stable environment for Filipino firms and talent in the UAE.
He added that Filipino entrepreneurs, particularly micro, small, and medium enterprises (MSMEs), would benefit from provisions supporting digital trade, technical cooperation, and greater participation in global value chains.
Bilateral trade between the Philippines and the UAE reached nearly USD1.83 billion in 2024, with the UAE accounting for almost 40 percent of Philippine exports to the Middle East.
Preliminary estimates indicate that the CEPA could boost Philippine exports to the UAE by more than 9 percent.
Recto said the CEPA would strengthen the Philippines’ existing network of free trade agreements with such partners as Japan, South Korea, the European Free Trade Association, ASEAN countries, and those under the Regional Comprehensive Economic Partnership. (PNA)