The UAE and New Zealand have signed a joint declaration of intent, signaling their commitment to embark on negotiations for a Comprehensive Economic Partnership Agreement (CEPA). The agreement aims to strengthen the trade and investment ties between these two nations.
Dr. Thani bin Ahmed Al Zeyoudi, UAE minister of State for Foreign Trade, and Todd McClay, New Zealand’s minister for Trade, signed the agreement.
In recent years, the non-oil trade between the UAE and New Zealand has experienced remarkable growth. In 2023 alone, the total trade volume reached an impressive $764.5 million, representing a significant increase of over 15 percent compared to pre-pandemic levels in 2019.
The CEPA seeks to build upon this momentum by fostering greater economic cooperation. Specifically, it aims to eliminate or reduce tariffs and trade barriers, improve market access, and establish investment pathways.
Moreover, the CEPA will create a favorable environment for trade and investment in key sectors such as agriculture, renewable energy, logistics, education, professional services, and healthcare.
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Direct access to new markets
Dr. Al Zeyoudi stated, “New Zealand has become a valued trade partner for the UAE, one that shares our conviction that open, rules-based trade is an essential driver of sustainable economic growth. A Comprehensive Economic Partnership Agreement will open up a range of exciting opportunities for both nations, with the UAE offering direct access to new markets for New Zealand’s exports, particularly in food and agricultural products, while our services exporters and investors will be able to explore a range of high-value sectors. We are both eager to get started.”
For his part, McClay said the launch of negotiations is an exciting step towards cementing a significant trade and economic relationship.
Surge in trade volumes
Foreign trade holds a central position in the UAE’s economic agenda. The UAE’s non-oil trade reached in 2023 an all-time high of $701 billion. This represents a 12.6 percent surge compared to the previous year (2022) and an 34.7 percent increase compared to 2021.
The CEPA with New Zealand is poised to make a significant contribution to the UAE’s foreign trade network, as it works towards its ambitious target of AED4 trillion ($1.1 trillion) in non-oil foreign trade by 2031.
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