UAE, Chile sign comprehensive economic partnership agreement

UAE President Sheikh Mohamed bin Zayed Al Nahyan and Chilean President Gabriel Boric Font held discussions on enhancing bilateral ties, particularly in commercial, investment, and developmental sectors, during the latter’s visit to the UAE, on July 29.

The leaders explored ways to advance relations to support the future-focused visions of both countries, contributing to sustainable development and prosperity. Their official talks took place at Qasr Al Watan in Abu Dhabi, marking a Chilean president’s first visit to the UAE since bilateral diplomatic relations were established in 1978.

Sheikh Mohamed welcomed the Chilean president and reviewed the progress in UAE-Chilean relations, highlighting cooperation in the economy, investment, renewable energy, digital economy, climate action, and infrastructure.

The UAE President hosted a luncheon in honour of President Boric and his delegation.

I was pleased to meet Chilean President @GabrielBoric in Abu Dhabi today to discuss ways to enhance the strong ties between the UAE and Chile across key fields. Together, we witnessed the signing of the UAE-Chile Comprehensive Economic Partnership Agreement, which will build… pic.twitter.com/GH0rSWSruf

— محمد بن زايد (@MohamedBinZayed) July 29, 2024

During the visit, the UAE and Chile signed the Comprehensive Economic Partnership Agreement (CEPA), aiming to stimulate non-oil bilateral trade by eliminating or reducing customs duties, removing trade barriers, and simplifying customs procedures. The agreement also seeks to establish new pathways for investment flows and cooperation, providing a platform for private sector partnerships.

The signing ceremony at Qasr Al Watan in Abu Dhabi was attended by Dr Thani bin Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade, and Alberto van Klaveren, Chilean Minister of Foreign Affairs.

The CEPA supports mutual economic growth by providing opportunities for business communities and the private sector to expand on both sides, establishing a vital trade and investment corridor with South America, noted Sheikh Mohamed.

President Boric welcomed the agreement, describing it as a major milestone in bilateral relations that will boost trade prospects and diversify investment sources, including in sustainability.

Sheikh Mohamed affirmed the UAE’s commitment to building developmental partnerships globally to serve mutual interests and provide opportunities for future generations. He noted the importance of investing in diverse opportunities, particularly in renewable energy, digital economy, sustainability solutions, and climate action. 

Non-oil trade volume between the UAE and Chile reached $306m in 2023, with both countries aiming to triple this figure by the end of 2030 by expanding cooperation across priority sectors.

During the visit, the two leaders also oversaw the announcement of several memoranda of understanding to enhance cooperation between the two countries. These agreements cover areas such as food security and agri-food investment, cooperation in investment, information technology, peaceful space research and activities, and mining.

The CEPA with Chile is the second of its kind signed by the UAE with a South American country, following a similar agreement with Colombia last April. 

Launched in 2021, the UAE’s CEPA programme is a key component of the nation’s growth and diversification strategy. Foreign trade remains a cornerstone of the UAE’s economic growth, with non-oil trade reaching a record high of $701bn in 2023, marking a 12.6 per cent increase from 2022 and a 34.7 per cent growth compared to 2021.

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