The UAE and Japan have launched talks to reach a Comprehensive Economic Partnership Agreement, it was announced on Wednesday.
President His Highness Sheikh Mohamed bin Zayed Al Nahyan today emphasized that relations between the UAE and Japan are built on a long history of strategic cooperation across various fields. He expressed his aspiration that these ties will be further boosted by the launch of the CEPA talks, which will foster new avenues for collaboration and support the sustainable economic growth of both nations and their people.
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New levels of cooperation
As the UAE and Japan move forward with the CEPA negotiations, the President commented that the launch of these talks reflects a mutual commitment to elevate their relationship to new levels of cooperation. He noted that, by facilitating investment and supporting innovation, the agreement will play an important role in the nation’s economic diversification efforts, while also providing more opportunities for collaboration between the business communities of both countries.
In a post on his X account, Japanese Prime Minister Fumio Kishida highlighted the significance of the commencement of CEPA negotiations, saying: “I expect that the conclusion of an ambitious, balanced, and comprehensive economic partnership agreement between Japan and the UAE, in addition to the Japan-GCC Free Trade Agreement, whose negotiations will proceed in parallel with the Japan-UAE negotiations, will contribute to the strengthening of economic relations and other fields between the two countries.”
Removing trade barriers
The announcement of the talks comes within the framework of the Comprehensive Strategic Partnership Initiative, launched during the visit of Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, to Japan in September 2022. It also aligns with the UAE’s strategy to expand its network of trade partners through the Comprehensive Economic Partnership Agreement programme, which was launched in September 2021 to achieve sustainable economic growth by removing unnecessary barriers to trade and improving market access for services, including the elimination or reduction of customs duties.
The CEPA talks announced today are built on flourishing trade relations. The UAE is Japan’s top trading partner in the Arab world in terms of exports and imports, with the UAE receiving 40 percent of Japan’s exports to Arab countries. Meanwhile, Japan is among the UAE’s top 10 trading partners globally.
Boosting non-oil trade
Non-oil trade between the two countries continued to thrive in the first half of 2024, reaching $8.1 billion, while the total trade for 2023 stood at $17.3 billion, marking a 17.4 percent increase compared to 2022.
The UAE’s Comprehensive Economic Partnership Agreement Programme is a cornerstone of national efforts to promote sustainable growth and economic diversification. It plays a pivotal role in boosting non-oil foreign trade, which surged to unprecedented levels in the first half of 2024, climbing 11.2 percent year-on-year to reach AED1.395 trillion. Since its inception, the programme has witnessed the signing of 11 agreements to date with strategically important countries on the global trade map, including six agreements that are currently in effect.
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