UAE And Japan Launch Talks For CEPA To Boost Economic Growth

President His Highness Sheikh Mohamed bin Zayed Al Nahyan recently highlighted the enduring strategic cooperation between the UAE and Japan. He expressed hope that the initiation of talks for a Comprehensive Economic Partnership Agreement (CEPA) will enhance these ties. This agreement aims to open new collaboration opportunities and support sustainable economic growth for both nations.

The CEPA discussions are part of a broader strategy to expand trade partnerships, aligning with the UAE's Comprehensive Strategic Partnership Initiative. This initiative was launched during the visit of His Highness Sheikh Khaled bin Mohamed bin Zayed Al Nahyan to Japan in September 2022. It also supports the UAE's goal of removing trade barriers and improving market access.

Japanese Prime Minister Fumio Kishida shared his thoughts on the CEPA negotiations via his X account. He stated, "I expect that the conclusion of an ambitious, balanced, and comprehensive Economic Partnership Agreement between Japan and the UAE, in addition to the Japan-GCC Free Trade Agreement, whose negotiations will proceed in parallel with the Japan-UAE negotiations, will contribute to the strengthening of economic relations and other fields between the two countries."

The announcement of these talks underscores a mutual commitment to elevate bilateral relations. By facilitating investment and supporting innovation, this agreement is expected to play a crucial role in economic diversification efforts. It will also create more opportunities for business collaborations between both countries.

The UAE is Japan's leading trading partner in the Arab world regarding exports and imports. The UAE accounts for 40% of Japan's exports to Arab nations. Additionally, Japan ranks among the top ten global trading partners for the UAE. These strong trade relations form a solid foundation for CEPA discussions.

Non-oil trade between these nations has been thriving. In 2023, total trade reached $17.3 billion, marking a 17.4% increase from 2022. The first half of 2024 saw non-oil trade amounting to $8.1 billion, reflecting continued growth.

Comprehensive Economic Partnership Programme

The UAE’s Comprehensive Economic Partnership Agreement Programme is central to promoting sustainable growth and economic diversification. It significantly boosts non-oil foreign trade, which soared by 11.2% year-on-year in early 2024, reaching AED1.395 trillion.

Since its inception in September 2021, this programme has led to 11 agreements with key global trade partners, six of which are currently active. These agreements aim to remove unnecessary barriers and improve market access for services by reducing customs duties.

The launch of CEPA talks signifies a step forward in strengthening economic ties between the UAE and Japan. Both countries are committed to enhancing their relationship through strategic cooperation across various sectors.

With inputs from WAM