Comprehensive Economic Partnership Agreement Between UAE And Chile Strengthens Global Ties

Ministers and officials from the UAE, along with local authority leaders, emphasised the significance of the Comprehensive Economic Partnership Agreement (CEPA) between the UAE and Chile. This agreement marks a pivotal moment in the UAE's strategy to broaden its global partnership network, particularly with Chile being the fourth largest economy in South America.

The officials highlighted that this agreement is a vital step in reinforcing the UAE’s position as a global hub for economy, trade, and industry. It aligns with the UAE's goal of enhancing the contribution of various sectors to the GDP, targeting a GDP of AED 3 trillion by the next decade, in accordance with the "We the UAE 2031" vision.

Mohamed bin Hadi Al Hussaini, Minister of State for Financial Affairs, said, "The Comprehensive Economic Partnership Agreement between the UAE and Chile represents a significant advancement in our bilateral relations, underlining our commitment to fostering economic growth and international cooperation. Chile’s well-regulated financial markets, supported by strong fiscal policy and liquidity from the Central Bank, offer confidence and clarity to UAE businesses and investors. This agreement is poised to create an optimal environment for cross-border exchange and collaboration."

Suhail bin Mohammed Al Mazrouei, Minister of Energy and Infrastructure, stated, "Chile has become an essential partner in our energy transition plans. This agreement will accelerate our progress in clean and renewable energy technologies, policy best practices, and smart grid development. Chile’s leadership in wind and geothermal power offers an excellent opportunity for deeper engagement as we aim to establish ourselves as champions of renewable energy."

Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology, said, "The agreement with Chile is crucial for our strategy to diversify our economy, enhance industrial capabilities, and boost non-oil exports. Chile’s growing manufacturing sector presents rich opportunities for UAE investors and exporters. This partnership will facilitate industrial development and export facilitation to key markets in the Middle East, Asia, and Africa."

Abdulla bin Touq Al Marri, Minister of Economy, added that expanding their foreign trade network is central to achieving sustainable economic growth. He noted that reaching a national GDP of AED 3 trillion by the next decade is a significant milestone. The agreement with Chile promotes dynamic trade and investment in sectors like manufacturing, financial services, energy, tourism, and agriculture.

Environmental Sustainability

Dr. Amna bint Abdullah Al Dahak Al Shamsi emphasised that this agreement reinforces their commitment to environmental sustainability and food security. She noted that Chile’s focus on sustainable finance and climate adaptation strategies would inspire their efforts towards achieving carbon neutrality by 2050.

Mohammed bin Hassan Al Suwaidi highlighted that the UAE’s programme for comprehensive economic partnerships opens new avenues for global investment. He mentioned that it eases capital flows and identifies high-potential projects. The agreement with Chile will spur investment in renewable energy, technology, agriculture, and infrastructure.

Diversifying Trade Partners

Dr. Thani bin Ahmed Al Zeyoudi emphasised that expanding their network of trading partners strengthens their position as a global trade hub while ensuring sustainable growth. He noted that Chile is the world’s largest copper producer and a key supplier of agricultural products. The agreement aims to increase non-oil foreign trade value and boost non-oil exports.

Ahmed Ali Al Sayegh remarked that trade drives stability and development. He stated that this agreement deepens trade relations by improving market access while reducing tariffs. It also creates new investment opportunities by securing supply chains.

Economic Growth

Khaled Mohamed Balama stated that this agreement aligns with their leadership's vision for a resilient economic system. He mentioned it aims to enhance economic growth while expanding foreign trade. Encouraging investment flows contributes to financial stability.

Ahmed Abdullah bin Lahej commented on how this agreement builds on robust trade ties by reducing tariffs and eliminating barriers. This facilitates smoother exchange of goods while reducing costs for businesses overall.

Abdulla Mohammed Al Basti added that this agreement strengthens economic cooperation between both nations by providing substantial opportunities for UAE-based exporters in Chile.

This partnership heralds a new chapter in UAE's relations with this crucial region on the global economic map.

With inputs from WAM