UAE And Ukraine Seal Deal On Economic Partnership To Elevate Trade
The United Arab Emirates (UAE) and Ukraine have reached a significant agreement, finalising the terms of a Comprehensive Economic Partnership Agreement (CEPA), marking a pivotal moment in the UAE's strategy to boost non-oil foreign trade to AED4 trillion by 2031. This development was officially announced following the signing of a joint statement by Dr. Thani bin Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade, and Yulia Svyrydenko, Ukraine’s First Deputy Prime Minister and Minister of Economic Development and Trade.
The implementation of the UAE-Ukraine CEPA is set to eliminate or reduce tariffs on essential product lines, dismantle unnecessary trade barriers, and ensure fair market access for exporters from both countries. This agreement is not only poised to aid Ukraine's recovery and the reconstruction of its critical industries and infrastructure but also aims to fortify supply chains to the MENA region, benefiting major exports like grains, machinery, and metals.
Dr. Al Zeyoudi highlighted the strategic importance of Ukraine as a gateway to Europe for UAE exporters and a crucial partner in food security imports. He emphasized that the CEPA would provide Ukrainian industrialists and entrepreneurs with new opportunities for expansion into Asian and African growth markets through the UAE. This agreement is expected to rejuvenate sectors such as logistics, manufacturing, IT, and rebuild vital infrastructure.
On her part, Yulia Svyrydenko expressed optimism about the CEPA negotiations' conclusion between Ukraine and the UAE, viewing it as a historic milestone in bilateral relations. She anticipates that the business communities in both nations will leverage the opportunities presented by this agreement to enhance trade and economic cooperation.
In 2023, non-oil trade between the UAE and Ukraine amounted to US$385.8 million, with joint Foreign Direct Investment (FDI) stock reaching US$360 million by the end of 2022. The sectors benefiting from this investment include logistics and infrastructure, travel and tourism, and advanced technology. The successful conclusion of negotiations with Ukraine contributes to the UAE's ongoing efforts to broaden its network of global trading partners. This network now includes 14 Comprehensive Economic Partnership Agreements with strategic markets across Africa, South America, Asia, and Europe, covering over a quarter of the global population.
This agreement underscores both nations' commitment to enhancing their economic ties and fostering mutual growth through strategic cooperation. As these discussions move towards ratification, the business communities in the UAE and Ukraine eagerly anticipate unlocking new avenues for collaboration that promise to bolster their economies in the years ahead.
With inputs from WAM
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