The Philippine export sector is poised for a significant boost following the formal signing of a major economic partnership with a key Middle Eastern ally. The Comprehensive Economic Partnership Agreement (CEPA) between the Philippines and the United Arab Emirates (UAE) is set to provide local exporters with wider market reach, reduced trade barriers, and enhanced global competitiveness, according to the Philippine Exporters Confederation Inc. (Philexport).
A Strategic Gateway to New Markets
Philexport hailed the agreement, signed recently, as a strategic milestone that strengthens economic bonds with the UAE. The confederation emphasized that the UAE serves not just as a vital export destination but also as a crucial gateway to larger markets within the Gulf Cooperation Council (GCC), Africa, and beyond. This positions Filipino products for far greater regional penetration.
Philexport President Sergio R. Ortiz-Luis Jr. underscored the pact's transformative potential. He stated that it will enable Philippine exporters to solidify their presence in the Middle East while simultaneously fostering new opportunities for investment, job creation, and inclusive economic growth within the Philippines.
"The UAE is not only one of our important export destinations but also a strategic hub for global trade," Ortiz-Luis said. "This agreement provides clearer rules, lower tariffs, and greater predictability for our exporters."
Targeted Benefits for Key Industries
The tangible benefits of the deal are backed by strong existing trade figures. The Philippines exported goods worth nearly US$390 million to the UAE in the previous year, and Philexport anticipates this positive momentum will continue through 2026.
Under the CEPA framework, exporters are projected to gain from:
- Deeper market access and lower trade barriers.
- Enhanced opportunities in priority sectors like electronics and food and agribusiness.
- Stronger export performance for machinery and tropical fruits such as bananas and pineapples, including their related value chains.
Empowering MSMEs for Global Competition
A key highlight of the agreement is its expected positive impact on micro, small, and medium enterprises (MSMEs). Philexport pointed out that the establishment of clearer trade regulations and improved access to overseas markets will empower smaller Filipino exporters. This support is crucial for helping them scale up their operations and compete effectively on the international stage.
The exporters' group commended the government's negotiating team for securing a deal that aligns with national strategies for export growth while effectively addressing the practical needs of the industry. Philexport expressed its commitment to collaborate with relevant government agencies and industry partners to ensure the effective implementation of the Philippines-UAE CEPA. The goal is to maximize the agreement's benefits for exporters and spur broader economic development.
