Malaca±ang: The historic free trade agreement between the Philippines and the United Arab Emirates (UAE) is expected to generate more jobs, reduce consumer prices, and open wider opportunities for Filipinos.

According to Philippines News Agency, Executive Secretary Ralph Recto stated that the Comprehensive Economic Partnership Agreement (CEPA) marks the Philippines' first free trade agreement with a Middle Eastern country. This development opens access to one of the world's fastest-growing markets and deepens ties with the Gulf region.

Recto emphasized that the CEPA is a significant step in expanding the Philippines' global trade footprint. It promises more quality jobs, affordable commodity prices, and increased opportunities for businesses and professionals in the Philippines. The agreement aims to reduce tariffs, expand market access for goods and services, boost investments, and create opportunities for Filipino professionals in high-demand sectors.

The trade deal with the UAE targets at least 90 percent liberalization of tariff lines and trade value. Filipino farmers and manufacturers are set to benefit from improved access for key products such as bananas, pineapples, canned tuna, electronics, and machinery, which will help sustain livelihoods and support regional growth across the country.

Additionally, the agreement will expand non-discriminatory access for Filipino professionals and workers in sectors like healthcare, construction, information technology, tourism, and education, providing a more stable environment for Filipino firms and talent in the UAE. Filipino entrepreneurs, particularly micro, small, and medium enterprises (MSMEs), stand to gain from provisions supporting digital trade, technical cooperation, and greater participation in global value chains.

Bilateral trade between the Philippines and the UAE reached nearly USD1.83 billion in 2024, with the UAE accounting for almost 40 percent of Philippine exports to the Middle East. Preliminary estimates suggest that the CEPA could boost Philippine exports to the UAE by more than 9 percent.

Recto also noted that the CEPA would strengthen the Philippines' existing network of free trade agreements with partners such as Japan, South Korea, the European Free Trade Association, ASEAN countries, and those under the Regional Comprehensive Economic Partnership.