UAE granting tariff breaks to up to 95% of PHL exports

THE Philippine-United Arab Emirates (UAE) Comprehensive Economic Partnership Agreement (CEPA) will grant preferential tariff treatment to 95% of Philippine exports, the Department of Trade and Industry said.

“(This will help) manufacturers expand exports, scale up production, and generate more jobs at home,” the DTI said in a statement late Tuesday.

The deal, which marked the country’s first free trade agreement (FTA) with a Middle Eastern country, is expected to benefit industries like personal care and cosmetics, food products, electronic equipment, automotive and aircraft parts, and textiles and apparel.

Philippine Exporters Confederation, Inc. President Sergio R. Ortiz-Luis, Jr. said the agreement is a major boost for exporters and the country as a whole.

“The UAE is not only one of our important export destinations but also a strategic hub for global trade,” he said in a statement.

“This agreement will help Philippine exporters expand their presence in the Middle East and beyond, while creating new opportunities for investment, jobs, and inclusive growth at home,” he added.

Ferdinand A. Ferrer, president of the Philippine Chamber of Commerce and Industry, also welcomed the agreement, citing its role in giving exporters and small and medium enterprises (SMEs) greater access to a high-income and highly-connected market.

“The UAE serves not only as a major destination for Philippine exports but also as a global gateway linking Asia, the Middle East, Africa, and Europe,” he said via Viber.

“With CEPA, exporters, investors, and SMEs now have a stronger platform to grow — not only in the UAE but across the wider Middle East and beyond,” he added.

He said the agreement will help the Philippines reduce reliance on a limited number of export markets, making its “trade more resilient and better positioned for long-term growth.”

The CEPA is also expected to create opportunities in digital and professional services, allowing providers in the information technology and business process management, healthcare, and tourism industries to compete under more predictable and non-discriminatory conditions.

The agreement also contains specific provision for micro, small and medium-sized enterprises (MSMEs).

“Finally, we have an agreement that will now allow our small businesses to export products, offer services, and partner with UAE companies more easily,” Mr. Ferrer said. 

“This CEPA aligns with our national export growth strategies by providing clearer rules, lower tariffs, and greater predictability for exports,” Mr. Ortiz-Luis said.

“It not only benefits established exporters but also creates pathways for MSMEs to scale up, compete internationally, and contribute to inclusive growth across Filipino communities,” he added. 

Foreign Buyers Association of the Philippines President Robert M. Young said the CEPA will serve as a booster to garments and textile exports to the UAE.

“Demand from the UAE is increasing, accounting for $13 million in exports of both knitted and woven clothing articles in 2024,” he said via Viber.

“CEPA is giving preferential (duty exemption to) up to 95% of Philippine-made apparel. This shows that the Middle East can be a lucrative market worth exploring,” he added.

The IT and Business Process Association of the Philippines (IBPAP) said the CEPA with the UAE comes at a time when Middle Eastern economies are accelerating their digital transformation.

“For the IT-BPM sector, CEPA strengthens the Philippines’ value proposition as a trusted digital services hub by encouraging greater investment flows, supporting innovation, and expanding opportunities for job creation for digital Filipino workers,” IBPAP President Jonathan R. Madrid said via Viber. 

“It also enhances market confidence by promoting clearer rules and more consistent treatment for Philippine service providers operating in partnership with firms in the UAE,” he added. — Justine Irish D. Tabile