The UAE and South Korea announced the signing of a comprehensive economic partnership agreement (CEPA) on Wednesday, which aims to free trade between the two nations and promote bilateral investment in key sectors. Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, and Ahn Duk-geun, Minister of Trade, Industry and Energy of the Republic of Korea, signed the agreement in Seoul.
The UAE-Korea agreement is the latest in the UAE’s CEPA foreign trade program. The program aims to propel non-oil foreign trade over AED4 trillion by 2031. Hence, it facilitates removing or reducing tariffs, enhancing market access to exporters, and eliminating barriers to trade. Moreover, the program seeks to create platforms for private-sector collaboration across nations.
President His Highness Sheikh Mohammed bin Zayed Al Nahyan arrived in Seoul on Tuesday to discuss the multiple areas of cooperation between the two countries. The visit saw the signing of 19 business deals and agreements in investment, energy, nuclear power, defense, technology, climate change, and cultural exchange.
Slashing trade tarrifs
The UAE and South Korea agreed on the CEPA in October 2023 before signing the agreement today. The agreement will support companies and investors from both sides by eliminating tariffs and trade barriers in vital sectors. This includes energy and resources, healthcare, advanced industries, smart farms, and bio-economy.
The agreement encompasses the UAE removing all import duty on automobiles over the next decade. Meanwhile, South Korea’s tariffs on crude oil imports will be removed. The agreement will also remove tariffs on more than 90 percent of all imports from both countries in the next 10 years. Moreover, it includes provisions for opening cultural services and the online gaming market.
Climate change cooperation
The UAE and South Korea also signed a framework agreement on climate change cooperation. Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology and UAE Special Envoy for Climate Change, and Ahn Duk-geun signed the climate cooperation agreement.
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Robust economic cooperation
Other agreements included a memorandum of intent which calls for South Korea to build 10 liquified natural gas (LNG) carriers worth over $1.5 billion. ADNOC L&S, Samsung Heavy Industries, and Hanwha Ocean signed the LNG carriers agreement. Meanwhile, the UAE’s sovereign wealth fund and several companies reaffirmed their commitment to invest a total of $30 billion in South Korea.
Other major agreements include:
- MoU on cooperation on energy infrastructure development in third countries.
- MoU between the UAE Ministry of Economy and the Ministry of SMEs and Startups of the Republic of Korea.
- MoU on investment cooperation framework.
- MoU on joint investment in nuclear power plants in third countries.
- MoU between ADNOC and Hyosung to explore collaboration opportunities across the LPG value chain, such as logistics and supply.
- MoU between the UAE Ministry of Industry and Advanced Technology and Korea’s Ministry of Trade, Industry and Energy on carbon capture and storage.
“Today’s signing represents a promising step forward as we commit to building upon the robust economic cooperation that links our nations and delivering tangible growth for our peoples,” commented the UAE President on social media platform X.
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