The Philippines and the United Arab Emirates (UAE) are preparing to sign a landmark Comprehensive Economic Partnership Agreement (CEPA) in mid-January 2026, culminating more than two years of negotiations and marking a new chapter in bilateral economic relations.
Historic First FTA with a Middle Eastern Partner
The CEPA will be the Philippines’ first free trade agreement (FTA) with a Middle Eastern country, a strategic milestone in Manila’s broader trade diversification strategy Trade Secretary Ma. Cristina A. Roque announced that a Philippine delegation led by President Ferdinand “Bongbong” Marcos Jr. will travel to the UAE between January 11 and January 14 to formalize the agreement.
Negotiations for the deal began in May 2024 after the two countries first expressed intent to pursue a trade pact in February 2022 and signed a terms-of-reference laying out the scope of talks in late 2023. What the Deal Covers
The CEPA aims to liberalize at least 90 percent of tariff lines and trade value between the Philippines and the UAE, significantly lowering trade barriers and opening markets for a wide range of goods and services.
For the Philippines, the UAE represents an important strategic export market, particularly within the Gulf Cooperation Council (GCC) region. Philippine products targeted for expanded market access include:
• Halal products
• Tropical fruits
• Garments and textiles
• Luxury consumer goods (e.g., watches, belts, leather items)
Beyond goods, the agreement is expected to promote services trade, investment flows, and broader economic cooperation. Manila will also use the signing event as an opportunity to engage UAE‐based investors, particularly in areas like manufacturing and infrastructure development.
Economic Importance
The UAE is currently one of the Philippines’ key trading partners, ranked among its top 20 markets globally and the largest export destination for Philippine goods within the Gulf region.
Reducing tariffs and opening investment channels under the CEPA is expected to:
• Boost Philippine exports
• Encourage UAE investment into Philippine industries
• Strengthen cooperation in financial services, technology, agriculture, and manufacturing domains
Part of a Broader Trade Push
The CEPA adds to the Philippines’ growing network of trade agreements, following recent deals with South Korea (2023), Japan (2006), and the European Free Trade Association (2016).
Trade officials have also identified other key negotiations in progress, including a prospective Philippines–European Union FTA and talks with Chile, aimed at broadening market access and strengthening global supply-chain participation.
What Comes Next
Once signed, the CEPA must still undergo ratification processes in both countries before it becomes fully enforceable. Philippine officials have set ambitious goals to finalize and ratify multiple trade agreements by 2028 as part of a broader economic strategy to boost competitiveness, attract foreign investment, and create jobs.
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