By Monsi A. Serrano
Ushering in the 50th anniversary celebration of diplomatic ties between Philippines and the United Arab Emirates, the two countries are moving closer to realizing their proposed free trade agreement (FTA) as formal talks are expected to conclude at the end of 2024.
Department of Trade and Industry Undersecretary for International Trade Allan Gepty discussed with THEPHILBIZNEWS the investment and trade opportunity with the United Arab Emirates through the Philippines-United Arab Emirates Comprehensive Economic Partnership Agreement (PH-UAE CEPA) that was initially discussed during the second round meeting.
The massive potential of the multifaceted cooperations cover eco-tech cooperation, micro, small and medium enterprises or MSMEs, customs procedure and trade facilitation, competition and consumer protection, and digital trade, Gepty said at the recent Tariff Commission-organized public consultation.
Gepty revealed the Philippines and UAE plan to convene two more rounds with a target to conclude negotiations by the end of 2024 and the Philippines will also continue to conduct stakeholder consultations before the eventual signing of the PH-UAE CEPA by the end of the year as the highlight of the Philippine-UAE 50th bilateral relations anniversary.
The trade executive added said that FTA negotiators will hold the third round of talks on September 16 to September 18 and the PH-UAE CEPA is a proposed FTA that aims to expand trade and investment opportunities with the UAE in both goods and services exports, including the state members of the Gulf Cooperation Council to create more opportunities for Filipinos.
Speaking to THEPHILBIZNEWS, Allan Gepty, the Undersecretary of the Department of Trade and Industry for International Trade expressed optimism in the ongoing negotiation with the UAE and revealed the vast opportunities await the Philippines if the deal successfully concludes.
“We are working hard to conclude the negotiations of the Comprehensive Economic Partnership Agreement (CEPA) with the United Arab Emirates (UAE) this year in time for the 50th year anniversary of our diplomatic relations. This will be a milestone in our international trade relations as this will be our first free trade agreement with a middle eastern country. Many of our stakeholders have a strong presence already in UAE particularly our professionals, service suppliers, and investors. Thus, with the CEPA, we can create more opportunities and encourage more economic engagements with UAE,” Usec, Gepty explained.
“The CEPA will open up trade opportunities to an estimated market of 10.06 million people and the 2nd largest Filipino population in the Middle East. On a larger scale, the CEPA is envisioned to expand market access across regions as UAE is strategically located on the
world’s busiest sea trade route between Asia and Europe, as well as at the crossroads of the GCC, Indian subcontinent, Africa and Central Asia covering a broader regional market of 3.5 billion people,” he added.
“As a comprehensive agreement, the CEPA will be negotiated as a far-reaching and progressive economic partnership that will boost opportunities in other areas of emerging interest including digital trade, intellectual property, competition, and trade and sustainable development,” Gepty concluded.
The CEPA with the UAE will operationalize the Philippines’ trade strategy to enter new markets as envisaged in the Philippine Development Plan 2023-2028 and the Philippine Export Development Plan 2023-2028 given that the Middle Eastern country is a good market for the Philippines’ halal-related products, tropical fruits, garments, as well as high-end finished consumer goods.
Some Filipino food and other agri-based products with unrealized export potential in the UAE include bananas, desiccated coconuts, coconut oil and fractions, pineapples, and raw cane sugar. Also with much potential are personal care products including perfumes and eye makeup.
The UAE is the Philippines’ 18th biggest trading partner and the top export market in the Gulf Cooperation Council. In 2023, total trade between the Philippines and the UAE was valued at US$1.88 billion, while exports and imports were valued at $341.97 million and $1.54 billion, respectively, DTI data show.
