UAE, Morocco finalise comprehensive free trade agreement

The UAE’s CEPA programme aims to increase the country’s non-oil foreign trade to Dhs4tn by expanding relations with strategically important markets around the world

by Marisha Singh

July 28, 2024

Image credit: @ThaniAlZeyoudi/X

The UAE and Morocco concluded negotiations for a Comprehensive Economic Partnership Agreement (CEPA), marking a significant step forward in strengthening trade and investment ties between the two nations, reported state news agency WAM.

The conclusion of the negotiations was confirmed with the signing of a joint statement by Dr Thani bin Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade, and Ryad Mezzour, Minister of Industry and Trade of Morocco, on Saturday.

Once implemented, the UAE-Morocco CEPA will facilitate the free flow of goods and services by reducing or removing tariffs, eliminating unnecessary barriers to trade, improving market access for services, enhancing customs harmonisation, and establishing flexible rules of origin for goods.

Additionally, the agreement will create platforms for investment and private-sector collaboration in key sectors such as renewable energy, tourism, infrastructure, mining, food security, transport, logistics, and ICT.

In 2023, the two countries shared US$1.3bn in non-oil trade, representing a 30 percent increase from 2022 and an 83 percent increase compared to 2019. The UAE stands as the largest Arab investor in Morocco, with more than $15bn invested in various strategic projects.

Dr Thani bin Ahmed Al Zeyoudi expressed his enthusiasm for this development in the UAE’s foreign trade agenda.

He stated, “The UAE-Morocco Comprehensive Economic Partnership Agreement is a valuable addition to our CEPA programme. Our two brotherly nations already enjoy strong bilateral economic relations, and this agreement will enable us to further develop areas of mutual benefit, particularly in sectors such as tourism, energy, manufacturing, and agriculture, generating long-term prosperity for both peoples. Morocco is one of the largest and most competitive economies in Africa, and we look forward to working in unison to create new opportunities for our private sectors.”

The UAE’s #CEPA program continues to break new ground in #Africa as we conclude the terms of a deal with #Morocco🇲🇦. Joined by Ministry of Trade and Industry HE @MezzourR to finalize negotiations, we agreed the vast potential ahead in the exchange of goods, services and capital. pic.twitter.com/qRmr7MUoJV

— د. ثاني أحمد الزيودي (@ThaniAlZeyoudi) July 27, 2024

Ryad Mezzour, Minister of Industry and Trade of Morocco, added, “I signed today with my brother, Thani bin Ahmed Al Zeyoudi, a joint declaration announcing the conclusion of negotiations between our two countries on a Comprehensive Economic Partnership Agreement.

“This agreement is part of the implementation of the Declaration signed by King Mohammed VI and President Sheikh Mohamed bin Zayed Al Nahyan on December 4, 2023 in Abu Dhabi, which aims to establish an innovative, renewed, and solid partnership between the two brotherly countries. The agreement, which strengthens the legal framework between the two countries, aims to support the development of trade and investment by opening new opportunities to upgrade the level of joint cooperation in economic and commercial fields.”

Morocco is the sixth-largest economy on the African continent, with a GDP of $152.4bn in 2023, projected to grow by 3.5 per cent in 2024. While agriculture remains the largest employer, the services sector is the largest contributor to GDP, accounting for 54 per cent, with the industrial sector contributing 23 percent.

The UAE’s CEPA programme aims to increase the country’s non-oil foreign trade to Dhs4tn by expanding relations with strategically important markets around the world. In 2023, the UAE’s non-oil trade in goods reached an all-time high of US$710bn, a 12.6 per cent increase from 2022 and 34.7 per cent more than 2021.

Morocco is the latest African nation to conclude CEPA terms with the UAE, following Mauritius, Kenya, and Congo-Brazzaville.

This agreement is expected to further enhance the economic cooperation between the UAE and Morocco, fostering a new era of mutually beneficial trade and investment opportunities.

Read: UAE, Mauritius sign comprehensive economic partnership agreement