UAE, New Zealand to enhance trade and investment relations

The United Arab Emirates and New Zealand have successfully concluded negotiations towards a Comprehensive Economic Partnership Agreement (CEPA) that will, once signed and implemented, enhance trade and investment flows between the two nations.

The latest deal in the UAE’s ongoing CEPA programme was confirmed by the signing of a joint statement by Dr Thani Al Zeyoudi, UAE Minister of State for Foreign Trade, and Todd McClay, New Zealand’s Minister of Trade.

Once implemented, the UAE-New Zealand CEPA will reduce or remove tariffs, eliminate unnecessary barriers to trade, improve market access, and create new platforms for investment and private sector collaboration with one of the world’s most globalised economies.

It will further strengthen economic ties that have witnessed consistent growth in recent years with bilateral non-oil trade totaling $460.3 million in the first half of 2024 – 11.5 per cent more than the same period in 2023.

Today, the UAE is New Zealand’s largest trading partner in the Middle East, accounting for 50 per cent of its trade with the Mena region, and tenth largest globally.

In addition to increased bilateral trade flows, the CEPA is also projected to increase investment between the two countries, creating opportunities for collaboration across a number of priority sectors.

The UAE’s investments in New Zealand totaled more than $170.2 million in 2021, while FDI from New Zealand to the UAE rose to $74.2 million, with the UAE’s economic stability, low taxes and robust legal framework making it an attractive destination for New Zealand’s investment community.

Upon the conclusion of negotiations, Al Zeyoudi stated: “New Zealand is a long-standing partner of the UAE with an economy that, like ours, is underpinned by trade and global connectivity.”

“Our CEPA will serve as a catalyst not only for bilateral trade but for greater exchange between the UAE and the high-growth Asia-Pacific region, underlining the scope and ambition of our foreign-trade agenda.”

“The UAE is committed to expanding opportunity for our private sector by enhancing market access to key economies, and with its well-developed agriculture and food-production sectors, New Zealand is a nation that holds outstanding potential across a number of industry verticals.”

McClay stated: “This CEPA will enable New Zealand exporters to participate in the UAE’s growing and vibrant economy. Our high-quality and safe agricultural goods, our strong manufacturing sector and our innovative services sector have a lot to offer to the UAE. We look forward to increased trade and people-to-people links between our countries.”

The UAE’s CEPA programme and expanding foreign trade remains the cornerstone of the UAE’s economic growth strategy.

In H1 2024, the UAE’s non-oil trade in goods reached a record Dhs1.395 trillion, an 11.2 per cent increase in foreign trade compared to H1 in 2023 and the sixth consecutive half of foreign-trade growth.

Meanwhile last week 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 $2.3 billion in H1 2024, an increase of 10 per cent from H1 2023. The UAE is Australia’s leading trade partner in the Middle East and its 20th largest partner globally.

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.”

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 per cent increase compared to 2022 - and 36.8 per cent 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 Dhs4 trillion ($1.1 trillion) by 2031.

Australia said it had reached a trade deal with the United Arab Emirates that would remove tariffs for about 99 per cent of Australian products, and result in savings of A$135 million ($91 million) in the first year.