MANILA -The Department of Trade and Industry on Monday said that it wanted to forge a free trade agreement (FTA) with the United Arab Emirates (UAE) within two years after formal discussions begin in 2024.
Trade undersecretary Allan Gepty said the next-level discussions on the Comprehensive Economic Partnership Agreement (Cepa) with the UAE is slated to begin within the first quarter of next year after the terms of reference was signed over the weekend.
“If the issues are not contentious, then we can expect smooth negotiations and hopefully, at least conclude the negotiation, if not next year, at least within two years,” he said. Trade Secretary Alfredo Pascual signed the terms of reference for the Cepa with UAE Minister of State for Foreign Trade Thani bin Ahmed Al Zeyoudi on the sidelines of the Conference of the Parties (COP)28 in Dubai.
Earlier in September, Trade Undersecretary Ceferino Rodolfo said that the Middle Eastern country was a good market for the Philippines’ halal-related products, tropical fruits, garments, as well as high-end, finished consumer goods like luxury watches, belts and other leather products.
According to the Philippine Statistics Authority, two-way trade between the two countries in 2022 totaled $1.85 billion, with the Philippines exporting $315.21 million worth of goods to UAE, which also hosts a large community of Filipino workers.
On the other hand, the Philippines imported $1.53 billion worth of goods from UAE during the same year.
The UAE is the Philippines’ 17th largest trading partner and the top export market among all Gulf Cooperation Council member states.
READ: PH, UAE continue free trade discussions
“In the last few years, the UAE has been investing in other developing countries, and the Philippines has to take advantage of this trend so that more than just a destination for our OFWs (overseas Filipino workers), UAE can become a source of investment funds and financing,” said Norman Vincent Wee, Special envoy of the President to the UAE for trade and investments.
Once realized, the Cepa will be the Philippines’ 4th bilateral free trade agreement, after the Philippines-South Korea FTA signed in 2023, the Philippines-Japan Economic Partnership Agreement in 2006 and the European Free Trade Association in 2016. INQ