UAE's Trade Pacts With Costa Rica And Mauritius Come Into Force, Boosting Economic Ties

The UAE has officially implemented two Comprehensive Economic Partnership Agreements (CEPA) on Tuesday, strengthening trade and investment with Costa Rica and Mauritius, two rapidly growing economies in strategic locations.

With these agreements now in effect, trade between the UAE, Costa Rica, and Mauritius will become easier. Tariffs on many goods will be reduced, customs procedures will be simplified, and new opportunities will be created for investment in key industries across the UAE, Central America, and Africa.

"The implementation of our CEPA with Costa Rica and Mauritius reflects a significant step forward in our nation's foreign trade program and its aim to establish stronger, more integrated trading relationships with the most dynamic markets around the world," Minister of State for Foreign Trade Thani bin Ahmed Al-Zeyoudi was quoted as saying by WAM.

"These CEPAs, enhancing connectivity to centers of growth in Central America and Africa, are a catalyst for deeper economic collaboration, unlocking a range of opportunities for our private sector and driving forward our shared goals, from enhancing food security to accelerating clean energy adoption," he added.

Al Zeyoudi further mentioned that the CEPA program helped the UAE achieve a record non-oil trade in 2024, reaching $817 billion, a 14.6% increase from 2023. So far, 27 CEPA deals have been finalized, giving UAE businesses access to more than a quarter of the world's population.

The UAE-Costa Rica CEPA, signed in April 2024, builds on strong trade ties. Non-oil trade between the two countries reached $82.6 million in 2024, growing by 27.5% compared to 2023. Under the agreement, 99.8% of UAE exports to Costa Rica will benefit from lower or no customs duties.

The partnership will also encourage more investment, adding to the UAE's existing $673 million investment in Central America. The UAE-Mauritius CEPA will strengthen trade with one of Africa's growing economies.

Non-oil trade between the two countries, currently valued at $209.8 million, is expected to reach $500 million within five years. This includes a massive increase in UAE exports to Mauritius. Under the agreement, more than 97% of UAE exports to Mauritius will either have tariffs removed immediately or see gradual reductions over a maximum period of five years.

The UAE's agreements with Costa Rica and Mauritius are the seventh and eighth CEPAs to take effect. Since launching the program in 2021, the UAE has already implemented similar trade deals with India, Israel, Türkiye, Indonesia, Cambodia, and Georgia.

As part of its goal to expand foreign trade to AED 4 trillion ($1.1 trillion), the UAE has signed 12 more agreements with different countries. These deals are awaiting approval and will further strengthen the UAE's position as a global trade hub.