UAE-Chile Comprehensive Economic Partnership Agreement Officially Enters Force To Boost Trade And Investment

The Comprehensive Economic Partnership Agreement (CEPA) between the United Arab Emirates and Chile has officially commenced, marking a significant advancement in their economic ties. This agreement aims to boost bilateral trade and foster new investment opportunities in key sectors, aligning with both nations' goals for sustainable economic growth.

In 2024, the UAE's non-oil foreign trade with Chile amounted to US$270 million. By the first half of 2025, this figure rose to US$153 million, reflecting a 7.1% increase compared to the previous year. With CEPA now active, it is anticipated that trade between the two countries will surpass US$500 million within five years due to improved market access and sectoral cooperation.

Dr. Thani Al Zeyoudi, Minister of Foreign Trade, expressed optimism about the agreement's potential impact. He stated, "The implementation of the UAE-Chile CEPA marks a significant milestone in our economic relations, paving the way for enhanced collaboration and investment opportunities in vital sectors such as renewable energy, agriculture, tourism, and infrastructure. This agreement solidifies our shared commitment to fostering open, rules-based trade, which is essential for achieving our mutual economic goals."

Chile's economy exceeds US$300 billion in GDP and is robust in manufacturing, financial services, energy, tourism, and agriculture. As a leading global producer of copper and lithium, Chile offers lucrative opportunities for UAE investors seeking to expand their portfolios.

The CEPA aims to facilitate increased two-way investments by building on existing UAE ventures in Chile. Notable investments include Abu Dhabi-based ADQ's acquisition of Verfrut, a major fruit exporter, and ADIA’s involvement in MUT (Mercado Urbano Tobalaba), Chile's first urban market.

This agreement will also enhance the UAE’s position as a global supply-chain hub by linking South America with markets across Africa, Europe, and Asia. Beyond goods trade facilitation, CEPA will broaden service trade and create new prospects in logistics, maritime activities, travel, tourism, and aviation services.

Infrastructure and Food Security Goals

The CEPA is expected to accelerate investments in critical infrastructure like roads and ports while supporting the UAE's food security objectives through strengthened agricultural collaboration. The programme is integral to the UAE’s foreign trade strategy aiming for US$1 trillion in total trade value by 2031.

Since its inception in September 2021, the CEPA programme has successfully concluded agreements with 32 countries. These agreements have enhanced trade relations and provided UAE businesses access to markets representing nearly a quarter of the world's population.

This strategic partnership not only strengthens economic ties but also paves the way for future collaborations that align with both nations' long-term goals for prosperity and development.

With inputs from WAM