UAE And New Zealand Conclude Negotiations For Comprehensive Economic Partnership Agreement To Boost Trade

The United Arab Emirates and New Zealand have finalised negotiations for a Comprehensive Economic Partnership Agreement (CEPA). This agreement, once signed and implemented, aims to boost trade and investment between the two countries. The announcement was made through a joint statement by Dr. Thani Al Zeyoudi, UAE Minister of State for Foreign Trade, and Todd McClay, New Zealand’s Minister of Trade.

Upon implementation, the UAE-New Zealand CEPA will focus on reducing or eliminating tariffs and unnecessary trade barriers. It will also enhance market access and foster new investment opportunities. This collaboration is expected to strengthen ties with one of the most globalised economies in the world.

The UAE's CEPA programme is central to its economic growth strategy. In the first half of 2024, the UAE's non-oil trade reached AED1.395 trillion, marking an 11.2% increase compared to the same period in 2023. This represents the sixth consecutive half-year of foreign trade growth.

Dr. Al Zeyoudi highlighted New Zealand as a long-standing partner with a similar economy focused on trade and global connectivity. He stated, "New Zealand is a long-standing partner of the UAE with an economy that, like ours, is underpinned by trade and global connectivity."

The CEPA is anticipated to increase bilateral trade flows significantly. In H1 2024, non-oil trade between the UAE and New Zealand reached US$460.3 million, up 11.5% from H1 2023. The agreement also aims to boost investments across various priority sectors.

McClay expressed optimism about the partnership: "This CEPA will enable New Zealand exporters to participate in the UAE’s growing and vibrant economy." He noted that New Zealand's agricultural goods, manufacturing sector, and innovative services have much to offer.

Strengthening Bilateral Relations

The UAE is currently New Zealand's largest trading partner in the Middle East, accounting for half of its trade with the MENA region and ranking tenth globally. The CEPA is expected to further solidify these economic ties.

The agreement will likely create new platforms for private sector collaboration between both nations. With its well-developed agriculture and food-production sectors, New Zealand presents outstanding potential across several industry verticals.

Investment Dynamics

In 2021, UAE investments in New Zealand exceeded US$170.2 million. Meanwhile, foreign direct investment from New Zealand into the UAE reached $74.2 million. The UAE's stable economy, low taxes, and strong legal framework make it an attractive destination for investors from New Zealand.

This comprehensive partnership not only aims at enhancing bilateral trade but also seeks greater engagement between the UAE and Asia-Pacific regions with high growth potential.

With inputs from WAM