Philippines-UAE Free Trade Deal Expected to Create Jobs and Lower Prices

The Philippine government says a new free trade agreement with the United Arab Emirates (UAE) could lead to more jobs, lower prices, and bigger opportunities for Filipino workers and businesses. Malacañang announced that the agreement is expected to improve economic outcomes for ordinary Filipinos by expanding trade, attracting investments, and opening new pathways for professionals.

Executive Secretary Ralph Recto said the deal, officially called the Comprehensive Economic Partnership Agreement (CEPA), is a major step forward for the country. According to him, this is the Philippines’ first free trade agreement with a Middle Eastern nation, and it strengthens ties with the Gulf region while giving the Philippines access to one of the world’s fastest-growing markets.

Recto described the CEPA as a major move that expands the Philippines’ global trade footprint. He said the benefits are meant to reach the broader population, not just corporations or large exporters. In his view, the agreement should help deliver more quality employment, lower the cost of goods, and increase business and career opportunities for Filipinos.

A key feature of the CEPA is its plan to reduce tariffs and expand market access for both goods and services. The government also expects it to encourage more investment and create more opportunities for Filipino professionals in sectors where demand is high.

Recto also noted that the agreement aims for at least 90 percent liberalization of tariff lines and trade value, which signals a wide opening of trade channels between the two countries.

According to Recto, the CEPA could be an absolute boon for the Filipino agricultural and manufacturing sectors, which are dependent on the wider export market for their survival and growth. He mentioned that among the products that will gain the most from this are bananas, pineapples, canned tuna, electronics, and machinery. These are the main export sectors and could provide the Philippines with the necessary support in terms of income and infrastructure in different parts of the country.

On top of that, the agreement guarantees a better access for Filipino professionals and labor in different sectors. Recto has characterized the CEPA as a move toward establishing a more secure and fair business environment for Filipinos in the UAE, particularly in the healthcare, construction, IT, tourism, and education industries. What it would actually mean is that Filipino staff and service providers could possibly have more transparent and stable working and business conditions.

Another significant area of focus is the support for entrepreneurs, particularly for micro, small, and medium enterprises (MSMEs). As per Recto, MSMEs will be the biggest beneficiary of the CEPA clauses related to digital trade, technical cooperation, and getting more integrated into the global value chains. Such a situation might allow smaller Filipino firms to vie and even enlarge their market share internationally with the help of the CEPA provisions.

The economic size of this partnership is already huge. The report mentioned that the lively commerce between the Philippines and the UAE was almost USD 1.83 billion in 2024 with the latter taking up about 40% of Philippine exports to the Middle East.

Moreover, the government disclosed the optimistic initial predictions: the preliminary statistics imply that the CEPA might boost the Philippines’ exports to the UAE by over 9 percent.
According to Recto, this deal also enhances the Philippines’ existing network of free trade agreements that include pacts with Japan, South Korea, the European Free Trade Association, ASEAN, and countries under the Regional Comprehensive Economic Partnership (RCEP).