MENA Newswire News Desk: The United Arab Emirates and New Zealand have successfully concluded negotiations on a Comprehensive Economic Partnership Agreement (CEPA), marking a significant milestone in strengthening economic ties between the two nations. The agreement, once finalized, aims to boost trade and investment, further cementing the UAE’s role as a key economic partner in the Asia-Pacific region.
In a joint statement signed by Dr. Thani Al Zeyoudi, UAE Minister of State for Foreign Trade, and New Zealand’s Minister of Trade, Todd McClay, both countries reaffirmed their commitment to enhancing economic cooperation. The CEPA will work to reduce or eliminate tariffs, remove trade barriers, and improve market access, offering new avenues for private sector collaboration.
Dr. Al Zeyoudi highlighted the long-standing relationship between the UAE and New Zealand, stating, “New Zealand is a key partner with a trade-driven economy much like ours. This agreement will not only boost bilateral trade but also strengthen the UAE’s position as a gateway to the high-growth Asia-Pacific region. Our foreign trade agenda aims to expand opportunities for the UAE’s private sector.”
The agreement is expected to open new markets for UAE businesses, particularly in sectors such as agriculture and food production, where New Zealand has demonstrated strength. McClay emphasized the benefits for New Zealand’s exporters, noting, “This CEPA provides New Zealand exporters with the opportunity to tap into the UAE’s dynamic economy. Our agricultural products, manufacturing, and innovative services are well-positioned to meet the UAE’s growing demand.”
The UAE’s CEPA program is a cornerstone of its economic strategy, aiming to strengthen global partnerships. In the first half of 2024, the UAE’s non-oil trade reached a record AED1.395 trillion, an 11.2% increase from the same period in 2023. This marks the sixth consecutive period of foreign trade growth, underscoring the UAE’s commitment to expanding its economic footprint globally.
Bilateral trade between the UAE and New Zealand has seen consistent growth, with non-oil trade reaching $460.3 million in H1 2024, an 11.5% rise from the previous year. The UAE is New Zealand’s largest trading partner in the Middle East, accounting for half of New Zealand’s trade with the region, and ranks as the 10th largest globally.
In addition to trade, the agreement is expected to increase foreign direct investment (FDI) between the two countries. UAE investments in New Zealand totaled over $170.2 million in 2021, while FDI from New Zealand to the UAE reached $74.2 million. The UAE’s stable economy, low taxes, and investor-friendly legal framework make it a prime destination for New Zealand’s investment community.