The Philippines and UAE push for stronger ties with CEPA and IPPA agreements

The Philippines and the United Arab Emirates aim for stronger economic ties as they conclude negotiations for the Investment Promotion and Protection Agreement (IPPA). Both countries have jointly announced the start of official discussions on a Comprehensive Economic Partnership Agreement (CEPA).

During the Philippines’ National Day at the 2020 Dubai Expo, Trade Secretary Ramon Lopez and UAE Minister Ahmed Al Sayegh recognized the signing of the CEPA.

These agreements mark an opportune time for UAE investors as the Philippines develops the necessary environment through economic and regulatory reforms. These reforms include the liberalization of the Public Service Act, Retail Trade Law, Foreign Investments Act, the CREATE Act, and the aggressive Build Build Build programs of the Duterte administration.

The opportunities for foreign direct investments are broadened by the implementation of the IPPA.

“The IPPA is modern, business-friendly, and comprehensive, covering promotion, facilitation, and protection of investments. The Agreement provides for the establishment of a Joint Committee on Investments, which will serve as a platform to more closely coordinate and collaborate in implementing a focused investment promotion that creates [a] greater impact to both our economies. I urge both sides to quickly convene so we can soon realize the objectives of the Agreement,” Lopez said.

To further these efforts, the countries are also in the process of finalizing a Memorandum of Understanding on Economic and Technical Cooperation. This memorandum paired with the IPPA aims to provide the solid foundation for pursuing the CEPA.

“These initiatives are expected to boost trade and investments between the two countries, leading to more diversified economic activities, development of new industries, employment generation, and higher consumer spending as we partner for shared prosperity. The Philippines may serve as UAE’s strategic hub for the Southeast Asian region, as economic activities continue to shift to Asia. Active engagement between government and business sectors is key in ensuring that both countries will maximize benefits of the Agreements, including diversifying and expanding economic interests,” the trade chief continued.

Source: Philstar