Phl, UAE to discuss economic partnership

The Philippines and United Arab Emirates (UAE) have agreed to hold discussions for the Comprehensive Economic Partnership Agreement (CEPA) to promote stronger trade and investment ties between the two countries.

The Department of Trade and Industry said $580.5 million worth of investments are expected to be made by UAE firms that have expressed interest to invest and explore business opportunities in the Philippines.

Speaking at the official ceremony for the Philippines’ National Day at the Expo 2020 Dubai, Trade Secretary Ramon Lopez said the countries have signed an agreement for the launch of the discussion of the CEPA.

“Both sides agreed to launch the negotiation of the future Comprehensive Economic Partnership Agreement or CEPA that will strengthen trade, enhance investment flows, remove unnecessary barriers to trade, and create new business opportunities,” he said.

CEPA will not just cover trade in goods and services, but also include high-level or improved features in a free trade agreement.

Lopez said the Philippines and UAE are also set to sign an Investment Promotion and Protection Agreement, which will provide more protection for UAE investments into the Philippines and vice versa, and include most favored nation treatment, freedom from expropriation transfers, as well as gives access to a dispute settlement mechanism.

“These bilateral agreements are most important and significant because they denote a commitment from both countries to work together to deepen cooperation and stimulate business initiatives on the basis of mutual benefit,” he said.

He said UAE companies have signified interest to invest and explore business opportunities in the Philippines by signing letters of intent and memoranda of understanding during the country briefing held last Friday.

“These investment prospects are expected to bring an estimated $580.5 million and generate about 3,900 employment opportunities in the Philippines,” he said

Among those interested in the Philippines is Heath Mart LLC, which intends to explore opportunities on medical equipment trading, healthcare facility and healthcare and medical business process outsourcing centers.

Leisure Consultants, meanwhile, intends to develop and operate the Fantasy World property located in Lemery, Batangas, with the 30-hectare development to feature a condotel, club house, amusement park, eco-resort, golf course, adventure and aqua park, local farmers market, and villas among others.

Abu Dhabi Future Energy Co. PJSC Masdar, meanwhile, is interested in developing and investing in projects related to renewable energy.

Given recent progress on economic reforms to encourage foreign investments, such as the amendments to the Public Service Act and amendments to the Foreign Investments Act, which are both up for signing by the President, and the signing into law of amendments to the Retail Trade Liberalization Act, Lopez said now is an opportune time for UAE investors to expand in the Philippines.

UAE ranked as the Philippines’ 17th top source of investments in 2019, valued at $13.2 million.

Total trade between the two countries rose 35 percent to $951 million last year from about $700 million in 2020.