UAE, Thailand agree to launch CEPA negotiations

The UAE and Thailand have agreed to start preliminary negotiations on a bilateral trade agreement targeting a broad expansion of economic ties, according to the state-run news agency WAM.

The CEPA negotiations follow the launch of the first UAE-Thai Business Council in February 2023. The first round of trade talks between the two countries will commence in the UAE on May 16.

Minister of State for foreign trade Dr Thani bin Ahmed Al Zeyoudi said the comprehensive economic partnership agreement (CEPA) talks represent an important milestone in the country’s growth agenda.

The trade talks with Thailand underscore the UAE’s broader strategy as a key enabler of global trade.

“Thailand is an increasingly important trade and investment partner for the UAE, and a high-growth economy in the heart of an exciting, rapidly emerging region,” said Dr Al Zeyoudi.

“We have enjoyed strong bilateral trade growth in recent years and believe CEPA will deliver a wealth of opportunity in sectors such as tourism, food security, IT, logistics and financial services.”

Today, HE Jurin Laksanawisit, Deputy Prime Minister and Minister of Commerce of #Thailand, and I agreed to launch negotiations towards a Comprehensive Economic Partnership Agreement – marking a new era of economic progress and opportunity for both nations. ???? pic.twitter.com/Og7iYxRNuO

— د. ثاني الزيودي (@ThaniAlZeyoudi) May 9, 2023

A trade agreement is expected to build on the rapidly increasing non-oil trade between the two nations, which surged by 21 per cent in 2022 to reach $6.1bn.

The country’s principal exports to Thailand are ethylene polymers, gold, vegetable residues, delivery vehicles and parts, and electric batteries, with iron, steel and cosmetics emerging sectors. Similarly, Thailand’s leading exports to the Emirates include office machinery and parts, motor vehicle parts, tires and aluminium plating.

UAE’s role as an enabler of global trade

The CEPA negotiations with Thailand are the latest under the UAE’s ambitious foreign trade agenda, which seeks to double the country’s foreign trade and the national economy by 2031.

The UAE has so far concluded four CEPAs with India, Israel, Indonesia and Turkey and the first two have already come into force and the signing of the other two agreements will follow later.

The country is currently in talks with more markets of strategic importance at the regional and global levels to establish similar agreements. The Emirates agreed to start preliminary negotiations on a bilateral trade deal with Costa Rica in March.

The trade and investment exchanges between the UAE and Costa Rica continue to grow as the non-oil trade reached $58.7m in 2022, a 19 per cent growth from a year earlier.

The Gulf state also agreed to start talks on establishing a CEPA with Vietnam to promote collaboration in trade, investment, economy, industry, energy, logistics, agriculture and infrastructure.

The trade and investment exchanges between the two countries totalled Dhs13.5bn in 2022, up 9 per cent from 2021 and with a 34 and 26 per cent growth from 2020 and 2019, respectively.

The World Trade Organisation’s (WTO) Global Trade Outlook and Statistics Report 2022, said that the UAE’s trade in goods with the rest of the world hit $1.024tn in 2022/, as the share of both exports and imports increased on the back of higher oil prices.

The trade body ranked the UAE 11^th in terms of exports of commodities and the 18^th importer of global merchandise goods trade worldwide.

Read: UAE, South Africa seek to boost trade ties in energy, tourism