ABU DHABI: The UAE and Australia have agreed to launch negotiations towards a Comprehensive Economic Partnership Agreement (CEPA) to enhance trade and investment flows between the two countries. Once concluded, the bilateral trade deal will be Australia’s first with a country in the Middle East and Africa region.
The announcement builds on growing economic relations between the UAE and Australia, with bilateral non-oil trade reaching US$4.5 billion in 2022, an increase of 28 percent as compared to 2021 and almost double the total recorded in 2020. In 2022, the UAE served as Australia’s leading trade partner in the Middle East and its 19th-largest export partner globally.
Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, said, ‘As the UAE extends its global trading network, Australia is a natural partner, with a mature, services-driven economy that is benefitting from a growing portfolio of free-trade partnerships with major trading blocs around the world. A UAE-Australia CEPA will create
a host of new opportunities for our private sector, in particular in logistics, food security, tourism, renewable energy and mining, with both nations benefitting from seamless access into important new regional markets.’
Al Zeyoudi noted that Australia has more than 300 businesses operating in the UAE in areas including building, construction, financial services, agricultural supplies and training services, and that a CEPA would enable greater opportunities across the UAE’s dynamic business ecosystem. The CEPA would also help to advance two-way investment into high-growth sectors such as real estate, healthcare, technology and logistics.
For his part, Don Farrell, Minister for Trade and Tourism for Australia, said, ‘A trade deal with the UAE will strengthen our relationship with one of our most important trading and investment partners in the Middle East.’
The UAE’s CEPA programme was launched in 2021 with the aim of doubling non-oil foreign trade to AED4 trillion by 2031. To date, the UAE has concluded d
eals with several major economies such as India, Indonesia and Trkiye, which has led to significant growth in the UAE’s non-oil trade. In H1 2023, the total value exceeded US$337 billion, representing growth of 14.4 percent compared to the same period in 2022 – and 3 percent more than H2 2022.
Source: Emirates News Agency