UAE Emerges As A Leading Trading Partner For The Eurasian Economic Union

The Comprehensive Economic Partnership Agreement (CEPA) between the UAE and the Eurasian Economic Union (EAEU) marks a significant step in strengthening economic ties. Andrey Slepnev, the Minister in charge of Trade at the Eurasian Economic Commission, highlighted its role in boosting trade diversification and investment flows.

Slepnev noted that the UAE has become a vital trading partner for EAEU countries. Its share in the Union's total foreign trade has reached two percent, placing it among the top ten global partners for the Eurasian Union. This growth underscores the robust economic relationship between both sides.

The CEPA aims to further this growth by eliminating customs barriers and broadening the range of exchanged goods. Customs duties on over 85 percent of goods will be reduced, lowering rates on Union products in the Emirati market from 5 percent to 0.6 percent, and on Emirati products in Union markets from 5.9 percent to 1.5 percent.

The agreement includes a variety of goods benefiting both parties. For the Union, these include metal products like steel and aluminium, petrochemicals, consumer goods, transport means, wooden products, and processed agricultural items such as dairy products and confectionery.

In return, the UAE will gain broader access to Union markets for strategic categories like polymers—especially polyethylene and polypropylene—and other consumer items such as cosmetics and home appliances. This opens up new opportunities for Emirati companies to expand their presence in markets with over 180 million people.

Slepnev emphasised that the UAE's strategic location, advanced infrastructure, and favourable economic policies make it a key partner for the EAEU. The UAE serves as a crucial trade gateway for Union countries to reach Middle East and North African markets.

Logistical Advantages

The UAE's position within the North-South international transport corridor enhances its role as a regional hub for transit trade towards Gulf countries, India, and South Asia. This logistical advantage supports its active expansion in forming trade partnerships globally.

Slepnev explained that CEPA focuses on high-priority sectors like agriculture and industry due to their strategic importance to both sides. These sectors are expected to benefit significantly from enhanced cooperation under this agreement.

The partnership agreement offers tangible benefits by fostering closer economic collaboration between the UAE and EAEU countries. It strengthens their positions in global trade dynamics while providing new opportunities for businesses on both sides.

With inputs from WAM