Arab News, Wed, Sep 18, 2024 | Rabi al-Awwal 15, 1446
UAE and Australia finalize trade deal to boost exports and investment
Emirates:
Australia has finalized a Comprehensive Economic
Partnership Agreement with the UAE, which could boost its exports by A$678
million ($458 million) annually.
In a press statement, Australia’s Trade Ministry
said the deal will eliminate tariffs on about 99 percent of the
country’s products, leading to savings of A$135 million in the first year and
increasing to A$160 million annually once fully implemented.
As Australia’s first trade agreement with a
country in the Middle East and North Africa region, the CEPA aims to enhance
bilateral trade and investment by streamlining trade processes, removing tariffs
on a wide range of goods and services, and encouraging private-sector
collaboration in key sectors.
The agreement builds on the strengthening economic
ties between the UAE and the southern hemisphere country with bilateral non-oil
trade reaching $2.3 billion in the first half of 2024 — a 10 percent increase
from the same period in 2023.
“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,”
said UAE Trade Minister Thani bin Ahmed Al-Zeyoudi.
He added: “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.”
According to the statement, the agreement is expected to benefit Australian
farmers and food producers, with estimated tariff savings of A$50 million
annually for the country’s food and agriculture exports.
It also includes a framework to boost UAE
investment in critical minerals, aiding the mining industry through tariff cuts
on alumina exports.
Australia’s Trade Ministry noted that the
agreement would reduce import tariffs on UAE-produced furniture, copper wire,
glass containers, and plastic, resulting in lower costs for businesses and
households, with estimated savings of around $40 million a year.
The deal encompasses commitments to promote labor
rights, protect the environment, and ensure sustainable development.
Australia and the UAE are working to finalize the
legal treaty text, which is expected to be signed later this year.