PH, UAE set to sign free trade pact in January
President Marcos is set to lead the Philippine delegation to the United Arab Emirates (UAE) in January, when the two countries are expected to sign a free trade agreement (FTA) following two years of negotiations.
Trade Secretary Cristina Roque said the Comprehensive Economic Partnership Agreement (Cepa) was scheduled to be signed between Jan. 11 and Jan. 14.
Joining the President for the signing are Roque and Finance Secretary Frederick Go, previously the special adviser to the President for investment and economic affairs.
This concludes a two-year-long negotiation process that began in May 2024 and ended in the first half of 2025. Both countries first expressed intentions to negotiate an FTA in February 2022 and eventually signed the terms of reference in late 2023.
According to the Department of Trade and Industry (DTI), the Cepa aims to achieve at least 90-percent liberalization in tariff lines and trade value. The deal is also expected to provide the Philippines with broader exposure to the large Gulf Cooperation Council market.
Additionally, the UAE is a strategic 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.
Once signed, the Cepa will become the Philippines’ fourth bilateral FTA, following the Philippines-South Korea FTA in 2023, the Philippines-Japan Economic Partnership Agreement in 2006 and the European Free Trade Association in 2016.
More deals eyed
Roque said another major agreement scheduled for signing in 2026 was the Philippines’ free trade pact with the European Union (EU), seen as one of the most comprehensive trade agreements pursued by the government to date.
Negotiations with the EU covered areas such as digital trade, energy and raw materials, trade in goods, services and investment, capital movements, payments, transfers and temporary safeguard measures, competition policy, customs and trade facilitation.
Roque said the Philippines was also expected to sign its FTA with Chile, which would be the country’s first trade deal with a Latin American partner.
This proposed pact is seen to strengthen complementary trade ties, with Chile offering its resources, technology and expertise, while the Philippines provides labor, services and access to the wider Asean (Association of Southeast Asian Nations) region.
Negotiations for a Philippines-Canada FTA are expected to begin in the first quarter of 2026. Once concluded, it would mark the Philippines’ first free trade pact with a North American country.
Beyond the Cepa, Roque said the DTI also planned to hold meetings with companies in the UAE to promote investment opportunities in the Philippines. Specifically, the DTI aims to attract more investors from the manufacturing sector.
