UAE and Turkey signed the Comprehensive Economic Partnership Agreement (CEPA) during a virtual summit attended by His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the United Arab Emirates, and Recep Tayyip Erdogan, President of Turkey.
The signing of the CEPA is a significant milestone in bilateral relations, and it reflects the remarkable progress made in recent years. The non-oil trade between the UAE and Turkey increased by 40% in 2022 compared to 2021 and by 112% compared to 2020, reaching $19B. Turkey is now the UAE’s fastest-growing trading partner among the top 10.
The UAE-Turkey CEPA aims to boost mutual benefits, long-term economic growth, and sustainable development by eliminating or reducing customs duties on 82% of goods and products, which represent over 93% of non-oil trade. The agreement also enhances market access to Turkey for UAE exporters in vital sectors such as construction, metals, polymers, and other manufactured products, according to WAM.
The CEPA is expected to increase non-oil bilateral trade to $40B annually within five years and create 25,000 new job opportunities by 2031. Furthermore, it is expected to boost UAE exports to Turkey by 21.7%. In 2022, non-oil exports to Turkey rose by 109% compared to 2021, reaching $5.6B, while the value of re-export operations from the UAE to the world increased by 87% to $2.3B.
The CEPA will also serve as a catalyst for trade and investment, with its various provisions, including liberalization of bilateral goods, services, and trade, intellectual property rights protection, and easing the work of investors, among others.
