The Philippines and the United Arab Emirates (UAE) will engage in a second round of free trade negotiations this week. The Department of Trade and Industry (DTI) of the Philippines targets an October or November conclusion for the Philippines-United Arab Emirates Comprehensive Economic Partnership Agreement (PH-UAE CEPA).
Undersecretary Allan Gepty highlighted the urgency, stating, “Our agreement with UAE is to conclude the negotiation within the year. We’re looking at October or November of this year,” according to a release by the Philippine Exporters Confederation (Philexport).
May saw the first negotiation round. This week’s talks, set for July 8 to 10 in Manila, will zero in on market access, a crucial component of the PH-UAE CEPA. The agreement aims to enhance trade and investment flows between the two nations and the broader Gulf region, opening new avenues for Filipino professionals and service providers.
The groundwork was laid in December 2023, detailing the negotiation process and key focus areas for the proposed trade deal. To hasten the process, working groups have been formed to address sectors including trade in goods, rules of origin, trade in services, digital trade, customs procedures and trade facilitation, investment, intellectual property rights, and trade and sustainable development.
The PH-UAE CEPA, once finalized, will be a landmark achievement as the Philippines’ first Free Trade Agreement (FTA) with a Gulf Cooperation Council member state and the wider Middle East region. This will be the Philippines’ fourth bilateral FTA, following deals with South Korea in 2023, Japan in 2006, and the European Free Trade Association in 2016.
The UAE ranks as the Philippines’ 18th largest trading partner and the major export market in the GCC. Trade between the Philippines and the UAE totaled $1.88 billion last year, with exports and imports at $341.97 million and $1.54 billion, respectively, according to Trade department data.
This trade agreement highlights the deepening economic connections between Asia and the Middle East, part of a broader global shift towards regional trade partnerships. The PH-UAE CEPA is expected to influence trade dynamics across multiple regions, setting a benchmark for future economic collaborations.
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