UAE And Tunisia Initiate CEPA Negotiations To Strengthen Trade And Investment Relations

The UAE and Tunisia have initiated talks to establish a Comprehensive Economic Partnership Agreement (CEPA). This agreement aims to enhance trade and investment relations between the two countries. Dr. Thani bin Ahmed Al Zeyoudi, UAE's Minister of State for Foreign Trade, and Samir Obeid, Tunisia's Minister of Trade and Export Development, led the discussions.

In 2024, non-oil trade between the UAE and Tunisia reached about US$350 million, marking a 7.7% increase from 2023. The UAE is Tunisia's top trade partner in the GCC region. The CEPA is expected to further boost this relationship by providing a strategic framework for economic integration.

The virtual meeting highlighted both nations' commitment to expanding their bilateral ties. The CEPA aims to reduce tariffs and trade barriers, improve market access, and establish investment pathways across various sectors. This agreement is seen as a pivotal opportunity for both countries to deepen economic ties.

Dr. Al Zeyoudi expressed optimism about the partnership with Tunisia, stating that it offers diverse trade and investment opportunities. "Tunisia is a valued partner that presents a diverse range of trade and investment opportunities that will enhance our mutual economic growth and prosperity," he said.

Samir Obeid emphasised the significance of these negotiations in forging new paths for economic cooperation. He stated, "The agreement we are working towards will mark a pivotal shift in establishing a comprehensive new framework for economic and trade collaboration between our nations."

The CEPA will serve as a catalyst for collaboration, enabling UAE investors to explore high-potential sectors in Tunisia. It will also enhance Tunisia's access to GCC and global markets, benefiting key sectors like agriculture, manufacturing, and renewable energy.

Aligning with Broader Strategies

This initiative aligns with the UAE's broader strategy to double its economy's size and expand its role in international trade. With 26 CEPAs concluded and numerous agreements already in force, this program has significantly enhanced access to high-growth markets.

The UAE’s total trade reached an all-time high of US$816 billion in 2024, marking a 14.6% increase over 2023. The ongoing negotiations with Tunisia are part of this broader strategy to strengthen international economic partnerships.

The next steps involve negotiating specific chapters and provisions of the CEPA to ensure a balanced deal. Upon successful conclusion, it could unlock significant investment opportunities in Tunisia’s diverse economy.

With inputs from WAM