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.
The latest deal in the UAE’s ongoing CEPA programme was confirmed by the signing of a joint statement by Dr. Thani Al Zeyoudi, UAE Minister of State for Foreign Trade, and Todd McClay, New Zealand’s Minister of Trade.
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 globalised economies.
UAE and New Zealand trade
Al Zeyoudi said: “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.
“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.”
McClay said: “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.”
In H1 2024, the United Arab Emirates’ non-oil trade in goods reached a record AED1.395tn ($380bn), an 11.2 per cent increase in foreign trade compared to H1 in 2023 and the sixth consecutive half of foreign trade growth.
It will further strengthen economic ties that have witnessed consistent growth in recent years, with bilateral non-oil trade totalling $460.3m (AED1.7bn) in the first half of 2024 – 11.5 per cent more than the same period in 2023.
Today, the United Arab Emirates is New Zealand’s largest trading partner in the Middle East, accounting for 50 per cent of its trade with the MENA region, and the tenth largest globally.
In addition to increased bilateral trade flows, the CEPA is also projected to increase investment between the two countries, creating opportunities for collaboration across a number of priority sectors.
The United Arab Emirates’ investments in New Zealand totalled more than $170.2m ($46m) in 2021, while FDI from New Zealand to the Gulf nation rose to $74.2m ($20m), with the UAE’s economic stability, low taxes and robust legal framework making it an attractive destination for New Zealand’s investment community.
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