UAE, New Zealand Conclude CEPA Negotiations To Boost Trade And Investment

The United Arab Emirates and New Zealand have finalized negotiations for a Comprehensive Economic Partnership Agreement (CEPA). Once put into action, this agreement will improve trade and investment between the two countries.

This new deal is part of the UAE's ongoing CEPA program and was confirmed by a joint statement signed by the UAE Minister of State for Foreign Trade Thani Al Zeyoudi and New Zealand's Minister of Trade Todd McClay.

The UAE-New Zealand CEPA will lower or remove tariffs, get rid of unnecessary trade barriers, improve access to markets, and create new opportunities for investment and cooperation between the private sectors of both countries.

The UAE's CEPA program and its growing foreign trade are key parts of the country's economic growth strategy. In the first half of 2024, the UAE's non-oil trade in goods reached a record AED 1.395 trillion, marking an 11.2 percent increase compared to the same period in 2023.

This is the sixth consecutive half-year of growth in foreign trade. The CEPA will also strengthen economic ties that have been steadily growing in recent years. In the first half of 2024, bilateral non-oil trade reached US$460.3 million, which is 11.5 percent more than the same period in 2023.

Currently, the UAE is New Zealand's largest trading partner in the Middle East, making up 50 percent of its trade with the MENA region, and is the tenth largest globally.

"The UAE is committed to expanding opportunity for our private sector by enhancing market access to key economies, and with its well-developed agriculture and food-production sectors, New Zealand is a nation that holds outstanding potential across a number of industry verticals," McClay said, according to WAM.

"This CEPA will enable New Zealand exporters to participate in the UAE's growing and vibrant economy. Our high-quality and safe agricultural goods, our strong manufacturing sector and our innovative services sector have a lot to offer to the UAE. We look forward to increased trade and people-to-people links between our countries," he added.

The CEPA is expected to boost trade between the UAE and New Zealand and investment, creating opportunities for cooperation in several key sectors.

In 2021, the UAE invested over US$170.2 million in New Zealand, while New Zealand's foreign direct investment (FDI) in the UAE reached $74.2 million. The UAE's economic stability, low taxes, and strong legal system make it appealing for New Zealand investors.