The negotiations built on the growing economic relations between the UAE and Australia, with bilateral non-oil trade reaching US$2.3 billion in H1 2024, an increase of 10 percent from H1 2023…reports Asian Lite News
The UAE and Australia have finalised negotiations on a landmark Comprehensive Economic Partnership Agreement (CEPA) between the two countries that will, once ratified and implemented, represent Australia’s first trade deal with a country in the MENA region. The UAE-Australia CEPA will streamline trade processes, eliminate tariffs on a wide range of goods and services, create new opportunities for investment, and encourage private-sector collaboration in priority sectors.
The negotiations built on the growing economic relations between the UAE and Australia, with bilateral non-oil trade reaching US$2.3 billion in H1 2024, an increase of 10 percent from H1 2023. The UAE is Australia’s leading trade partner in the Middle East and its 20th largest partner globally. As of 2023, the two countries have also committed a combined $14 billion to each other’s economies, with more than 300 Australian businesses operating in the UAE in sectors such as construction, financial services, agriculture, and education.
Upon the conclusion of negotiations, Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, stated, “With strong economic, social, and cultural ties between our nations, Australia has long been a valued partner for the UAE. This CEPA will unlock significant opportunities for UAE businesses and provide Australian companies with a gateway to new markets across the MENA region. I look forward to collaborating with my Australian counterpart to swiftly ratify the CEPA and deliver its benefits. This milestone not only reaffirms our commitment to building strong relations with key partners but to expanding the reach of our trading network into key regions such as Asia-Pacific.”
Australia’s Minister for Trade and Tourism, Don Farrell, stated, “As a trading nation, we are committed to opening up new opportunities for our exporters, farmers, producers, and businesses. Under this trade agreement, Australian exports are expected to increase by $460 million per year, but this deal means more for Australia than just numbers. A trade agreement with the UAE will facilitate investment into key sectors, which is important to achieving our ambition of becoming a renewable energy superpower.”
Foreign trade remains the cornerstone of the UAE’s economic agenda. In 2023, the UAE’s non-oil trade in goods reached an all-time high of $712 billion, a 14.3 percent increase compared to 2022 – and 36.8 percent more than 2021. A CEPA with Australia will be a significant addition to the UAE’s foreign trade network, which is helping to propel non-oil foreign trade towards its target of AED4 trillion ($1.1 trillion) by 2031.
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