If materialized, the Comprehensive Economic Partnership Agreement or CEPA with the United Arab Emirates will be a milestone for the Philippines, as it will be the country's first free-trade agreement with a Middle Eastern country and a member of the Gulf Cooperation Council.

On 2 December 2023, Department of Trade and Industry Secretary Fred Pascual signed the Terms of Reference or TOR for the negotiations of a CEPA with UAE Minister of State for Foreign Trade Thani bin Ahmed Al Zeyoudi as part of DTI's side activities at the Conference of the Parties (COP) 28.

The TOR for the negotiations of the CEPA is the first step towards the proposed bilateral free trade agreement with the UAE.

Also, the TOR provides guidelines on the conduct of the negotiations and the scope and coverage of the proposed CEPA.

The CEPA is envisioned to expand the flow of goods and services exports to the UAE and the greater Gulf region, generate more investments from the UAE, and create more opportunities for professionals and service providers in the Middle-Eastern country.

"It is worthy to note that the current policy direction of the country is really to expand our FTA network. In other words, more than forging FTA with our major trading partners, we have to venture to other non-traditional partners, and UAE is one promising trade and investment partner," said chief negotiator for CEPA, Undersecretary Alan Gepty in a press conference on Monday in Makati.

The UAE is the Philippines' 17th largest trading partner and the top export market among all Gulf Cooperation Council member states.

Additionally, the UAE is the second home to one of the largest populations of overseas Filipinos in the Middle East, as well as well-known and home-grown Filipino brands and businesses.

ASAP formalization

For his part, Pascual said the sealing of the CEPA-FTA with the UAE is deemed to be formalized as soon as possible, as they want to enhance our trade and investment partnership.

"But given the experience of trade agreement negotiations of UAE with other ASEAN member states, we are hoping to make the negotiations swiftly. We are eyeing for the first quarter of next year to commence the negotiation. And then, moving forward, if the issues are not contentious, then at least within two years we can conclude the negotiations," Gepty told reporters.