Aerospace Exports Loom With Philippines-Abu Dhabi Free Trade Deal

The prospect of aerospace exports from the Philippines has emerged with the signing of a Comprehensive Economic Partnership Agreement (CEPA), a free trade deal between Manila and Abu Dhabi.

Gepty, the country’s lead negotiator for FTAs, highlighted that the CEPA would be a milestone as the Philippines' first FTA with a Middle East country. I Photo: Asia House

This information was disclosed in a press briefing by Department of Trade and Industry (DTI) Undersecretary Allan Gepty, who highlighted that the CEPA would particularly benefit high-value export products to the UAE, specifically parts of helicopters and aircraft, which experienced the highest annual export growth in 2022.

Gepty stated, “Maybe one important consideration is the fact that our exports to the UAE, many are high-value products like parts of helicopters or aircraft. Noting that UAE basically owns one of the largest airlines in the world, we hope we can also improve our niche in the aerospace industry.”

According to the DTI, exports of other airplane or helicopter parts to the UAE recorded the highest increase in 2022 at 122.97 percent.

Gepty emphasized that in addition to aerospace exports, the potential free trade agreement (FTA) with the UAE would also enhance Philippine exports of agricultural and industrial products to the Middle East and Europe, with the UAE serving as the hub for Philippine products in these regions.

On Dec. 2, DTI Secretary Alfredo Pascual and Minister of State for Foreign Trade Dr. Thani bin Ahmed Al Zeyoudi signed the terms of reference (TOR), outlining the scope of negotiations for the CEPA in Dubai on the sidelines of the 28th meeting of the Conference of the Parties of the United Nations Framework Convention on Climate Change.

Gepty, also the country’s lead negotiator for FTAs, highlighted that the CEPA would be a milestone as the Philippines' first FTA with a Middle East country.

He added that with the signing of the TOR, formal negotiations would commence in the first quarter of the year, with the aim of concluding the FTA talks within one to two years.

Pascual expressed his urgency, stating that he gave a "marching order to get it done quickly" for the country to benefit from the FTA with the UAE.

During his visit to Manila last November, Al Zeyoudi conveyed the UAE's commitment to swift negotiations, aiming to conclude the FTA in six months, while also targeting a fivefold increase in bilateral trade and investments with the Philippines through the CEPA.

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