UAE And Chile Set To Enhance Economic Ties With New Trade Agreement

Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, underscored the importance of the Comprehensive Economic Partnership Agreement (CEPA) between the UAE and Chile. He mentioned this is the 11th agreement under the UAE's programme developed over three years, expected to be effective within six months.

During a roundtable hosted by the ministry with a Chilean delegation, Dr. Al Zeyoudi stated that CEPA with Chile could add $73 million to the national economy by 2031. This agreement is also anticipated to significantly boost UAE's exports to Chile.

Alberto van Klaveren, Chilean Minister of Foreign Affairs, expressed optimism about the CEPA's potential to enhance trade and create investment opportunities for both nations. "We believe there is significant potential in our relationship with the UAE, and Chile offers many opportunities, particularly in areas like food and minerals, which are crucial to our economy," he added.

Dr. Al Zeyoudi highlighted that this agreement stands out due to its high level of liberalisation, exceeding 99% for both countries. This liberalisation is especially important in the services sector, which is vital for attracting investments.

The agreement includes a unique chapter focused on empowering women in economic and commercial sectors for the first time. Additionally, it features a comprehensive chapter on supply chains, emphasising their significance amid current global crises and geopolitical situations.

Sectoral Focus and Private Sector Engagement

The CEPA builds on direct interactions between Emirati and Chilean private sectors in areas of mutual interest such as minerals, renewable energy, infrastructure, hospitality, and lithium. These engagements aim to foster stronger economic ties between the two nations.

Dr. Al Zeyoudi noted that these sectors are crucial for both countries' economies and will benefit from increased cooperation facilitated by the agreement.

This partnership reflects a strategic effort to strengthen bilateral relations through targeted economic collaboration. The focus on diverse sectors ensures a broad impact on both economies.

The inclusion of specialised chapters addressing key issues like women's empowerment and supply chain resilience highlights the comprehensive nature of this agreement.

This approach aims to address contemporary challenges while promoting sustainable economic growth for both countries involved.

The CEPA represents a significant milestone in UAE-Chile relations, promising enhanced trade and investment opportunities that align with both nations' economic goals.

With inputs from WAM