UAE strikes CEPA deal with New Zealand to boost exports, investment

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The UAE and New Zealand have signed a Comprehensive Economic Partnership Agreement (CEPA), the latest deal in the Gulf state’s foreign trade agenda. The pact seeks to advance bilateral trade flows, remove trade barriers, and improve market access for merchandise and service exports.

The trade agreement will remove tariffs on about 98.5 per cent of New Zealand’s exports immediately upon implementation, rising to 99 per cent within three years. It builds on the growing economic relations between the two countries, with bilateral non-oil trade reaching Dhs3bn (NZD1.3bn) in H1 2024.

“The UAE is one of our largest markets in the Middle East and a top 20 export market overall,” said New Zealand Trade Minister Todd McClay.

New Zealand dairy exports to the UAE amounted to NZD718m, industrial products NZD237m, red meat NZD46m, horticulture NZD44m and tourism NZD31m, according trade ministry.

“The UAE is committed to expanding opportunity for our private sector by enhancing market access to key economies, and with its well-developed agriculture and food-production sectors, New Zealand is a nation that holds outstanding potential across a number of industry verticals,” said Dr. Thani bin Ahmed Al Zeyoudi, the UAE Minister of State for Foreign Trade.

The trade pact is expected to increase investment between the two countries and create opportunities for collaboration across a number of priority sectors.

The UAE’s investments in New Zealand totalled more than $170.2m in 2021, while FDI from New Zealand to the Emirates rose to $74.2m.

The UAE’s CEPA programme and expanding foreign trade remain the cornerstone of the UAE’s economic growth strategy. The country’s non-oil trade reached a record Dhs1.4tn in H1 2024, an 11.2 per cent increase in foreign trade compared to the corresponding period a year ago.

Meanwhile, the UAE and Australia signed a bilateral trade pact earlier in September. The deal is projected to remove tariffs on about 99 per cent of Australian products, resulting in savings of $91m (AUD135m) in the first year, rising to AUD160m per year once the agreement is fully implemented.

The UAE has initiated a raft of bilateral trade, investment, and cooperation deals since 2021 to bolster efforts to diversify income sources and economic sectors.

To date, the Gulf state has ratified five CEPAs with India, Israel, Indonesia, Türkiye, Cambodia, and Georgia. It is also in negotiations with more markets of strategic importance at the regional and global levels, including Congo-Brazzaville and Malaysia.

Read: UAE, Australia reach trade deal to boost exports, investment