The UAE and New Zealand have successfully concluded negotiations towards a Comprehensive Economic Partnership Agreement (CEPA) that will, once signed and implemented, enhance trade and investment flows between the two nations.
Dr. Thani bin Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade, and Todd McClay, New Zealand’s Minister of Trade, signed the joint statement, further expanding the UAE’s ongoing CEPA program.
Once implemented, the UAE-New Zealand CEPA will reduce or remove tariffs, eliminate unnecessary trade barriers, improve market access, and create new platforms for investment and private sector collaboration with one of the world’s most globalized economies.
Foreign trade surges
The UAE’s CEPA program and expanding foreign trade remain the cornerstone of the UAE’s economic growth strategy. During the first half of 2024, the UAE’s non-oil trade in goods reached a record AED1.395 trillion, an 11.2 percent increase in foreign trade compared to H1 2023 and the sixth consecutive half of foreign trade growth.
“New Zealand is a long-standing partner of the UAE with an economy that, like ours, is underpinned by trade and global connectivity. Our CEPA will serve as a catalyst not only for bilateral trade but for greater exchange between the UAE and the high-growth Asia-Pacific region, underscoring the scope and ambition of our foreign trade agenda,” stated Al Zeyoudi.
UAE is New Zealand’s largest regional trading partner
The UAE and New Zealand CEPA will further strengthen economic ties between the two nations that have witnessed consistent growth in recent years. In H1 of 2024 alone, bilateral non-oil trade between the two countries reached $460.3 million, an 11.5 percent annual increase.
Today, the UAE is New Zealand’s largest trading partner in the Middle East, accounting for 50 percent of its trade with the MENA region, and the tenth largest globally.
“This CEPA will enable New Zealand exporters to participate in the UAE’s growing and vibrant economy. Our high-quality and safe agricultural goods, our strong manufacturing sector, and our innovative services sector have a lot to offer to the UAE. We look forward to increased trade and people-to-people links between our countries,” noted McClay.
Read: UAE, Australia free trade agreement to save $160 million a year in tariffs
Increased investment flows
In addition to greater bilateral trade flows, the CEPA will increase investment between the the UAE and New Zealand, creating opportunities for collaboration across a number of priority sectors.
The UAE’s investments in New Zealand totaled more than $170.2 million in 2021, while FDI from New Zealand to the UAE rose to $74.2 million. The UAE’s economic stability, low taxes, and robust legal framework make it an attractive destination for New Zealand’s investment community.
“The UAE is committed to expanding opportunity for our private sector by enhancing market access to key economies, and with its well-developed agriculture and food-production sectors, New Zealand is a nation that holds outstanding potential across a number of industry verticals,” added Al Zeyoudi.
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