UAE And Morocco Ink Comprehensive Economic Partnership To Strengthen Trade Ties

The United Arab Emirates and the Kingdom of Morocco have finalised a Comprehensive Economic Partnership Agreement (CEPA). This agreement marks a significant step in enhancing trade and investment ties between the two nations. The conclusion of negotiations was confirmed by Dr. Thani bin Ahmed Al Zeyoudi, UAE's Minister of State for Foreign Trade, and Ryad Mezzour, Morocco's Minister of Industry and Trade.

Upon implementation, the UAE-Morocco CEPA will facilitate the free flow of goods and services. It aims to reduce or remove tariffs, eliminate unnecessary trade barriers, improve market access for services, enhance customs harmonisation, and establish flexible rules of origin for goods. This agreement will also create platforms for investment and private-sector collaboration in key sectors such as renewable energy, tourism, infrastructure, mining, food security, transport, logistics, and ICT.

In 2023, the non-oil trade between the UAE and Morocco reached US$1.3 billion. This represents a 30 percent increase from 2022 and an 83 percent rise compared to 2019. The UAE is the largest Arab investor in Morocco with investments exceeding US$15 billion in various strategic projects. Dr. Thani bin Ahmed Al Zeyoudi expressed his enthusiasm for this development in the UAE’s foreign agenda.

Dr. Thani bin Ahmed Al Zeyoudi stated, "The UAE-Morocco Comprehensive Economic Partnership Agreement is a valuable addition to our CEPA program. Our two brotherly nations already enjoy strong bilateral economic relations, and this agreement will enable us to further develop areas of mutual benefit, particularly in sectors such as tourism, energy, manufacturing and agriculture, and generate long-term prosperity for both peoples."

Ryad Mezzour highlighted the significance of this agreement by saying, "I signed today with my brother, Thani bin Ahmed Al Zeyoudi...a joint declaration announcing the conclusion of negotiations between our two countries on a Comprehensive Economic Partnership Agreement." He added that this agreement aims to support trade and investment development by opening new opportunities for joint cooperation in economic and commercial fields.

This agreement follows a declaration signed by His Majesty King Mohammed VI and President His Highness Sheikh Mohamed bin Zayed Al Nahyan on 4th December 2023 in Abu Dhabi. The declaration aims to establish an innovative partnership between the two countries.

Morocco's Economic Landscape

Morocco is the sixth-largest economy in Africa with a GDP of US$152.4 billion in 2023. The GDP is expected to grow by 3.5 percent in 2024. Agriculture remains the largest employer while services contribute 54 percent to GDP; the industrial sector accounts for 23 percent.

The UAE’s CEPA programme aims to boost non-oil foreign trade to AED4 trillion by expanding relations with strategically important markets globally. In 2023, UAE’s non-oil trade reached an all-time high of US$710 billion—a 12.6 percent increase from 2022 and a 34.7 percent rise from 2021.

Morocco joins other African nations like Mauritius, Kenya, and Congo-Brazzaville in concluding CEPA terms with the UAE.

This new chapter promises enhanced cooperation between the UAE and Morocco across various sectors.

With inputs from WAM