UAE, South Korea successfully conclude CEPA negotiations

Image: WAM

Dr Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, and Dukgeun Ahn, Minister of Trade for the Republic of Korea, have concluded negotiations towards a CEPA (comprehensive economic partnership agreement) between the two nations.

This development will herald a new chapter of economic cooperation.

The bilateral deal comes at a time of growing trade exchange between the two countries.

The UAE is Korea’s second-largest Arab trade partner, while Korea is the UAE’s 11th-largest trading partner among non-Arab Asian countries.

In H1 2023, bilateral non-oil trade reached $3bn, which is consistent with H1 2022 and up 21 per cent in the same period in 2021.

A UAE-Korea CEPA will reinforce East-West supply chains, facilitate two-way FDI flows, and enhance joint research and knowledge exchange across a range of sectors, including energy, advanced manufacturing, technology, food security, and healthcare.

UAE- South Korea CEPA will drive further cooperation

Al Zeyoudi said, “The Republic of Korea is an important growth partner for the UAE, with its highly sophisticated economy built on manufacturing, logistics, and advanced technology. Our two nations share a deep commitment to driving long-term, sustainable growth through trade, investment and economic diversification.

“Our latest CEPA will drive cooperation across each of them, empowering both economies with new insights, experiences and knowledge. This deal can potentially be a powerful catalyst for innovation and enterprise.”

Building stronger ties

In January, at the Presidential Summit, the two nations signed a number of memoranda of understanding, including the Trade and Investment Promotion Framework to pursue optimal trade collaboration strategies, covering areas such as supply chains, digital trade, logistics, business environment and technical barriers to trade, and a $30bn plan to invest in strategic sectors of the Korean economy.

Read: UAE, Korea to advance strategic partnership, sign MoUs related to space, clean energy, defence sectors

In April this year, all four units of the $20bn Barakah Power Plant in Abu Dhabi, constructed by the Korea Electric Power Corporation in a consortium that included Hyundai, Samsung, Korea Hydro and Nuclear Power, and Doosan Heavy Industries and Construction, became operational, with the capability of meeting up to 25 per cent of the UAE’s electricity needs.

This development represents the latest milestone in the UAE’s foreign trade agenda, launched in September 2021 to develop deeper ties with strategic allies worldwide.