The United Arab Emirates and New Zealand have agreed to commence negotiations for a Comprehensive Economic Partnership Agreement (CEPA), aiming to enhance trade and investment relations between the two countries.
A joint declaration confirming the agreement was signed by Dr. Thani bin Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade, and Todd McClay, New Zealand’s Minister for Trade.
The proposed CEPA demonstrates the strengthening bilateral ties, as non-oil trade between the UAE and New Zealand surged to $764.5M in 2023, marking a growth of over 15 percent from the pre-Covid year of 2019.
The agreement aims to increase these figures by eliminating or reducing tariffs and trade barriers, enhancing market access, and creating investment pathways in sectors like agriculture, renewable energy, logistics, education, professional services, and healthcare.
Dr. Al Zeyoudi remarked, “New Zealand has emerged as a valued trade ally for the UAE, sharing our belief in the importance of open, rules-based trade for sustainable economic development. A Comprehensive Economic Partnership Agreement will unlock numerous opportunities for both nations, with the UAE offering direct market access for New Zealand’s exports, especially in food and agricultural products, while our services exporters and investors will find prospects in various high-value sectors. We are both eager to commence.”
McClay commented, “The initiation of negotiations today is an exciting move towards solidifying a significant trade and economic partnership. This comes after fruitful exploratory discussions and public consultation, highlighting the need for a high-quality agreement to boost our economies and expand export opportunities.”
He further stated that a deal with the UAE will open new avenues for New Zealand exporters, crucial for rejuvenating the economy, as evidenced by the Government’s target of doubling exports by value within a decade. Enhanced opportunities in the UAE will create more commercial avenues, lifting domestic incomes and reducing living costs.
“The UAE serves as a pivotal export market and hub in the Gulf region, presenting substantial prospects for collaboration in areas such as agriculture and sustainable energy,” he added.
Foreign trade remains central to the UAE’s economic strategy, with its non-oil trade in goods hitting a record high of $701B in 2023, a 12.6 percent increase from 2022 and 34.7 percent more than 2021. A CEPA with New Zealand will be a significant addition to the UAE’s foreign trade network, advancing non-oil foreign trade towards its target of AED 4T ($1.1T) by 2031.