Australia has announced a comprehensive trade deal with the United Arab Emirates (UAE), which is set to remove tariffs on 99% of Australian goods, resulting in significant savings of A$135 million ($91 million) in the first year alone. This landmark agreement aims to enhance trade relations between the two countries, which are already strong economic partners, with bilateral trade amounting to A$9.9 billion in 2023 and two-way investments totaling A$20.6 billion.
Australian Trade Minister Don Farrell praised the agreement, emphasizing that the benefits go beyond mere financial figures. “Aussie exports are expected to grow by A$678 million annually, but this deal means more for Australia than just numbers,” Farrell said. The trade deal is expected to significantly strengthen ties between Australia and the UAE, providing broader opportunities for businesses across key sectors, including agriculture, minerals, and manufacturing.
The agreement also includes a strategic framework to increase investment from Abu Dhabi in Australia’s critical minerals sector. This is expected to provide a boost to Australia’s mining industry, particularly with tariff reductions on alumina exports.
The mining sector stands to benefit from improved access to the UAE market, which is keen to secure more resources to fuel its ambitious industrial and technological goals.
UAE Minister of Foreign Trade, Thani Al Zeyoudi, announced on X (formerly Twitter) that both nations had agreed on the terms of a Comprehensive Economic Partnership Agreement (CEPA), which will “secure a new era of cooperation and opportunity.” This agreement solidifies the UAE’s commitment to building stronger economic partnerships in the region and globally.
Australia’s top exports to the UAE include meat, dairy, seafood, oil seeds, steel, coal, and agricultural products such as nuts, chickpeas, and lentils. The Australian Meat Industry Council welcomed the agreement, highlighting that it will give farmers greater access to vital markets for beef, lamb, and goat meat.
The trade deal is expected to come into effect later this year, further solidifying the economic partnership between Australia and the UAE.