The Philippines has achieved a landmark victory in its international economic relations, securing its first-ever free trade agreement in the Middle East. The historic Comprehensive Economic Partnership Agreement (CEPA) with the United Arab Emirates was formally signed on January 13, 2026, in Abu Dhabi.
A Strategic Milestone for Philippine Trade
The pact was inked by Department of Trade and Industry (DTI) Secretary Cristina A. Roque and UAE Minister of Foreign Trade Thani bin Ahmed Al Zeyoudi. The signing ceremony was graced by President Ferdinand R. Marcos Jr. and UAE President Mohamed bin Zayed Al Nahyan, underscoring the high-level importance both nations place on the deal.
Secretary Roque emphasized that the CEPA is a cornerstone of the administration's strategic use of trade policy for long-term economic growth. She stated that following President Marcos Jr.'s directive, such agreements are designed to propel Philippine businesses into higher-value markets and more integrated global supply chains.
"The CEPA provides our exporters and service providers a stable and preferential platform in the Middle East," Roque said. "It sends a powerful message that the Philippines is committed to deeper, rules-based economic partnerships."
Major Benefits for Philippine Exports and Services
The agreement delivers immediate and tangible advantages for Filipino businesses. A central benefit is that approximately 95% of Philippine exports to the UAE will now receive preferential tariff treatment. This is expected to help manufacturers expand their market reach, scale up production, and create more jobs in the Philippines.
Key product categories set to benefit include:
- Personal care and cosmetics (hair creams, deodorants)
- Food products (canned tuna, sardines, snacks, condiments)
- Electronic equipment (hair dryers, instant-print cameras, machinery parts)
- Automotive and aircraft parts
- Textile and apparel products
Beyond goods, the CEPA establishes clearer rules for trade in services, covering sectors where the Philippines has strong capabilities:
- Professional Services
- Construction
- Retail
- IT-BPM (Information Technology and Business Process Management)
- Tourism
This framework will make it easier for Filipino service providers to expand in the UAE and will encourage Emirati companies to invest in the Philippines.
Beyond Traditional Trade: A Comprehensive Partnership
The CEPA is not limited to tariffs and services. It pioneers cooperation in several forward-looking and priority areas, creating a broad framework for future collaboration. These areas include:
Digital trade, MSME development, and sustainable development, which covers the promotion of labor rights and environmental protection. The agreement also strengthens intellectual property rights enforcement, competition and consumer protection policies, government procurement processes, and economic and technical cooperation.
This deal comes at a crucial time. In 2024, the UAE was already one of the Philippines' top trading partners and its leading export market in the Middle East. The CEPA's wide-ranging framework is designed to accelerate this existing relationship, driving deeper integration in trade, services, and investment for years to come.
