The UAE is enhancing its economic relationship with New Zealand through a Comprehensive Economic Partnership Agreement (CEPA), aimed at boosting bilateral trade and creating new investment opportunities.
UAE President His Highness Sheikh Mohamed bin Zayed Al Nahyan has partnered with His Excellency Christopher Luxon, prime minister of New Zealand, to witness the formal signing of the CEPA between their nations.
The agreement, WAM reported, was executed at the Abu Dhabi National Exhibition Centre (ADNEC) by His Excellency Dr. Thani bin Ahmed Al Zeyoudi, UAE minister of State for Foreign Trade, and His Excellency Hon Todd McClay, New Zealand minister for Trade. This landmark agreement is set to lower trade barriers, streamline customs processes, and promote enhanced collaboration and investment.
Read more: UAE and New Zealand begin economic partnership negotiations to boost trade, investment
Strengthening ties with the Asia-Pacific region
His Highness Sheikh Mohamed bin Zayed emphasized that this agreement significantly contributes to the UAE’s CEPA initiative, reinforcing connections with the vibrant Asia-Pacific region through one of its most progressive and open markets.
He highlighted that the UAE-New Zealand CEPA aligns both countries in a common goal to cultivate resilient, future-oriented economies founded on knowledge, innovation, and talent development.
Growing economic relations
The UAE-New Zealand CEPA builds upon the strengthening economic relations between the two nations, with bilateral non-oil trade reaching $642 million in the first nine months of 2024—an 8 percent increase compared to the same timeframe in 2023.
As part of the CEPA, New Zealand will offer 100 percent duty-free access for imports from the UAE, while the UAE will extend duty-free access to 98.5 percent of New Zealand’s products, increasing to 99 percent within three years.
Future trade projections
This agreement is anticipated to elevate bilateral trade to $5 billion by 2032, effectively tripling the five-year average trade of $1.5 billion shared between the UAE and New Zealand from 2019 to 2023. The CEPA marks New Zealand’s inaugural trade agreement with a Middle Eastern country and stands as one of the UAE’s most comprehensive CEPAs to date, encompassing areas such as indigenous trade, sustainable development, women’s economic empowerment, and transparency.
Robust investment framework
The CEPA, in conjunction with the Bilateral Investment Treaty on the Promotion and Protection of Investments signed alongside it, will establish a stronger framework for enhancing UAE-New Zealand investment relations across a variety of sectors.
The UAE’s CEPA initiative is a vital component of the nation’s growth strategy, targeting a total trade value of $1 trillion by 2031 and aiming to double the size of its broader economy to exceed $800 billion by the same year.
Since its inception in September 2021, the CEPA program has successfully concluded agreements with countries across the Middle East, Africa, Southeast Asia, South America, and Eastern Europe, fostering improved trade relations and access to markets that encompass nearly a quarter of the global population.
