Australia and the United Arab Emirates (UAE) have concluded negotiations on a Comprehensive Economic Partnership Agreement (CEPA), marking a significant milestone in their bilateral trade relations. Australia’s Minister for Trade and Tourism, Don Farrell, announced today that the UAE is Australia’s largest trade and investment partner in the Middle East, and this agreement will eliminate tariffs on over 99% of Australian products entering the UAE.
“The UAE is our largest trade and investment partner in the Middle East, and this agreement will eliminate tariffs on over 99% of Australian products entering the UAE,” Minister Farrell stated. Consequently, CEPA could add $457.3 million to Australia’s export revenue annually.
Key sectors that stand to benefit from this agreement include alumina, meat, oilseeds, and education services. Two-way trade between the two countries stood at $6.6 billion in 2023, with two-way investment reaching $13.8 billion.
Furthermore, this agreement is expected to attract UAE’s sovereign wealth fund investments into Australia’s critical minerals sector, supporting the country’s goal of becoming a renewable energy superpower, including solar energy. Both countries are currently working towards formalizing the legal treaty text, expected to be signed later in 2024.
This landmark deal denotes an important step forward for Australia’s trade relations with the Middle East region, as well as offering substantial economic benefits to both nations.
