Manila – The aerospace sector in the Philippines is set to receive a significant boost from the Comprehensive Economic Partnership Agreement (CEPA), a free trade deal between Manila and Abu Dhabi.
According to Philippines News Agency, Undersecretary Allan Gepty during a press briefing on Monday, this agreement will particularly benefit high-value aerospace exports, such as helicopter and aircraft parts, which saw the highest annual growth in 2022.
The DTI noted a 122.97 percent increase in exports of airplane or helicopter parts to the UAE in 2022. Gepty emphasized the potential of the UAE, which owns one of the world’s largest airlines, as a key market for the Philippines’ aerospace industry. In addition to aerospace, the potential free trade agreement with the UAE is expected to enhance the export of Philippine agricultural and industrial products to the Middle East and Europe, with the UAE serving as a hub for these regions.
On December 2, DTI Secretary Alfredo Pascual and UAE Minister of State for Foreign Trade Dr. Thani bin Ahmed Al Zeyoudi signed the terms of reference for the CEPA in Dubai. This agreement marks the Philippines’ first FTA with a Middle Eastern country. Formal negotiations are set to begin in the first quarter of the year, with hopes to conclude within one to two years. Al Zeyoudi has expressed intentions to expedite the negotiation process, targeting a completion within six months, and aims to quintuple bilateral trade and investments with the Philippines through the CEPA.