UAE And Ecuador Announce Intent For CEPA Negotiations To Strengthen Economic Ties
In a significant move to bolster economic ties, Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade of the United Arab Emirates (UAE), and Sonsoles Garcia, Minister of Production, Foreign Trade, Investments and Fisheries of Ecuador, have officially declared their countries' intention to embark on negotiations towards a Comprehensive Economic Partnership Agreement (CEPA). This announcement was made in Nairobi during the UAE delegation's visit to several Latin American countries, marking a pivotal moment in the UAE's strategy to expand its commercial and investment footprint across Latin America.
The UAE has previously signed similar agreements with Costa Rica and Colombia, positioning Ecuador as the third Latin American country to engage in such negotiations. This initiative is part of the UAE's broader objective to enhance its economic presence in the region and stimulate sustainable growth. The proposed CEPA aims to boost non-oil bilateral trade and encourage increased investment flows between the UAE and Ecuador by removing trade barriers and facilitating a diverse exchange of goods and services.
This partnership is expected to unlock new economic prospects for both nations, allowing Ecuadorian companies to benefit from the UAE's economic strength and strategic location. It also offers Emirati businesses a valuable gateway into the Latin American market, starting with Ecuador. The burgeoning economic relationship between the two countries is evidenced by a significant increase in non-oil bilateral trade, which soared to $675 million in 2023. This figure represents a 76% rise from 2022 and more than triple the trade volume recorded in 2021.
Additionally, Dubai Ports World's investment in Ecuador's Port of Posorja, amounting to $1.2 billion, underscores the growing economic connections between the UAE and Ecuador. Dr. Al Zeyoudi highlighted that initiating negotiations with Ecuador is in line with the UAE's ambition to establish itself as a leading global hub for trade, investment, and logistics. He pointed out the vast opportunities for deeper economic integration between the two countries across various sectors including agriculture, tourism, infrastructure, technology, and renewable energy.
Minister Garcia echoed these sentiments by emphasizing the evolving trade relations between Ecuador and the UAE. She noted that beginning CEPA negotiations signifies a crucial step towards broadening economic ties and fostering active engagement from both nations' business communities, private sectors, and investors. This partnership not only strengthens bilateral relations but also promotes sustainable economic development for both countries.
The agreement between the UAE and Ecuador reflects a shared commitment to advancing cooperation across multiple economic areas. It sets a foundation for future collaboration that promises to bring mutual benefits and contribute significantly to the economic prosperity of both nations.
With inputs from WAM
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