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The Philippines and the United Arab Emirates will start discussions on a comprehensive economic partnership agreement
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The CEPA will build on the proposed MOU on Economic and Technical Cooperation, and the Investment Promotion and Protection Agreement
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The MOU on Economic and Technical Cooperation seeks to establish a joint economic commission to facilitate implementation of cooperation initiatives on trade and investment
The Philippines and the United Arab Emirates (UAE) have agreed to discuss a comprehensive economic partnership agreement (CEPA).
“Both governments recognize the large potential to expand bilateral trade and investment relations and are working towards the finalization of key agreements that will pave the way for the start of the broader CEPA negotiations,” Trade Secretary Ramon Lopez said in a statement.
Lopez met with UAE’s Minister of State Ahmed bin Ali Al Sayegh and Minister of Trade Thani bin Ahmed Al Zeyoudion on December 8 during the Expo 2020 Dubai to discuss deepening of economic relations between the two countries.
According to Lopez, the CEPA will build on shared objectives the Philippines and UAE are pursuing under the proposed memorandum of understanding on Economic and Technical Cooperation, and the Investment Promotion and Protection Agreement (IPPA), which are both underway.
The MOU on Economic and Technical Cooperation seeks to establish a joint economic commission to facilitate the implementation of cooperation initiatives on trade and investment, particularly in the areas of agribusiness, manufacturing, renewable energy, real estate development, logistics, transportation, communication, tourism, technology, and innovation.
Despite the pandemic, a number of Philippine exports have significantly increased in 2020, according to the Department of Trade and Industry. These include electronic equipment and parts (up 698.7%), iron and steel (60.4%), footwear (112.4%), processed tropical fruits (133.1%), travel goods and handbags (143.9%), and desiccated coconut (1626.3%).
“In addition, the Philippines-UAE IPPA is expected to further deepen economic relations between the two countries by creating favorable conditions for investments and stimulating business initiatives while ensuring that the interests and sensitivities of both Parties are protected,” Lopez added.
The IPPA aims to promote and facilitate UAE investments to the Philippines in key sectors of interest such as agribusiness, energy efficiency technologies and renewable energy, infrastructure, information technology-business process management, oil and gas, and tourism.
Net foreign direct investments from UAE for the first nine months of 2021 amounted to US$2.43 million, more than twice the $1.18 million UAE investments for the full year of 2020.
On the other hand, UAE hosts known Philippine franchise brands and over a thousand Filipino-owned businesses, covering diverse sectors of food and beverage, trading and logistics, consultancy and other creative services, education and training, and hospitality services, among others.
UAE ranked as the second largest destination of overseas Filipinos in the Middle East, next to the Kingdom of Saudi Arabia. A majority are in the construction sector, particularly engineering and architecture, followed by the tourism and hospitality sector, customer service, and health and medical fields.
“Given our economic complementarities and the strong ties between our peoples, we are optimistic that the proposed CEPA with UAE will redound to mutual benefits and will play an important role in accelerating the growth trajectory of the Philippine economy,” Lopez said.
