Philippines, UAE seek to advance trade, investment relations

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The Philippines and the United Arab Emirates (UAE) emphasized the need to enhance trade, investment and economic cooperation between the two countries as their respective trade ministers met.

In a statement yesterday, the Department of Trade and Industry (DTI) said Trade Secretary Alfredo Pascual met with UAE Minister of State for Foreign Trade Thani bin Ahmed Al Zeyoudi on the sidelines of the 23rd ASEAN Economic Community (AEC) Council Meeting on Sept. 3.

'During the meeting, both sides acknowledged the need to further enhance PH-UAE bilateral trade, investments, and economic cooperation,' the DTI said.

It said the two trade ministers discussed exploring possible investments and cooperation in areas like renewable energy, research and development, and skills development.

'They also looked forward to a possible PH-UAE Comprehensive Economic Partnership Agreement (PH-UAE CEPA), and the implementation of the Investment Promotion and Protection Agreement (IPPA),' the DTI said.

In an interview last month, Trade Undersecretary and Board of Investments managing head Ceferino Rodolfo shared that the country is gaining traction with the CEPA with the UAE as the terms of reference (TOR) for the agreement is already being finalized.

Negotiations for the CEPA are expected to start this year.

In December 2021, the DTI announced that both the Philippines and the UAE agreed to begin discussions on the scope of a possible CEPA.

In June last year, the Philippines signed an IPPA with the UAE.

The DTI said earlier that the IPPA is projected to generate 2,500 jobs and garner over P7.1 billion worth of investments.

Sectors of interest from the UAE include import and distribution, manufacture of scaffolding and formwork and providing engineering services, defense, telecommunications, tourism, poultry, aerospace, retail (medical equipment or devices), and renewable energy.

The IPPA covers a wide range of areas such as protection of investments, national treatment, most favored nations treatment, transfers, expropriation and compensation, and procedures for investor-state dispute settlement.

The DTI said earlier that as part of the IPPA, a joint committee on investment to be headed by the undersecretaries of the DTI and UAE's Ministry of Finance was formed to start investment initiatives and look at areas of cooperation.