UAE, Australia conclude negotiations on Comprehensive Economic Partnership Agreement

emirates7 - The UAE and Australia have successfully concluded negotiations on a Comprehensive Economic Partnership Agreement (CEPA), marking Australia's first trade deal with a country in the Middle East and North Africa (MENA) region. Once ratified and implemented, this agreement will simplify trade processes, remove tariffs on a variety of goods and services, new investment opportunities, and promote collaboration between private sectors in key industries.

The talks built on the strengthening economic ties between the two nations. Bilateral non-oil trade between the UAE and Australia reached US$2.3 billion in the first half of 2024, a 10% increase compared to the same period in 2023. The UAE is Australia's largest trade partner in the Middle East and ranks as its 20th largest trading partner globally. By 2023, the two countries had invested a combined total of $14 billion in each other's economies, with over 300 Australian companies operating in the UAE across sectors such as construction, finance, agriculture, and education.

Commenting on the agreement, Dr. Thani bin Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade, highlighted the strong economic, social, and cultural links between the UAE and Australia, stating that the CEPA will open up significant opportunities for businesses in both countries. He also expressed eagerness to collaborate with his Australian counterpart to swiftly ratify the agreement, which will provide Australian companies access to markets across the MENA region. Dr. Al Zeyoudi emphasized that this deal reflects the UAE's commitment to building strong international partnerships and expanding its trade network into critical regions like Asia-Pacific.

Australia’s Minister for Trade and Tourism, Don Farrell, remarked that this agreement would open up new avenues for Australian exporters, farmers, producers, and businesses. He noted that Australian exports could increase by $460 million annually under the deal. Farrell also stressed that the agreement is vital for investment in key sectors, which will help Australia realize its ambition of becoming a leader in renewable energy.

Foreign trade remains a central focus of the UAE's economic strategy. In 2023, the UAE’s non-oil trade reached a record high of $712 billion, a 14.3% rise from 2022 and a 36.8% increase compared to 2021. The CEPA with Australia will further bolster the UAE’s foreign trade network, aiding its goal of reaching AED4 trillion ($1.1 trillion) in non-oil trade by 2031.