AUSTRALIA and the United Arab Emirates have signed their Comprehensive Economic Partnership Agreement – a deal eliminating tariffs on more than 99% of Australia’s exports to the UAE.
The CEPA was signed on 6 November, formalising and finalising an agreement secured by the federal government in September.
Federal trade minister Don Farrell described the CEPA as “the most liberalising trade agreement the UAE has signed to date”.
Independent modelling estimates a potential annual increase in Australian goods exports to the UAE of around $678 million. Australian farmers and producers are expected to benefit from an estimated $50 million annually in tariff savings alone.
Senator Farrell said the UAE is Australia’s largest market in the Middle East, with two-way trade valued at $9.9 billion in 2023.
He noted the UAE also acts as a distribution hub for the Gulf region.
“This is a great deal for Australian farmers and producers – over 99% of Australian products will enter the UAE tariff free,” he said.
“This deal means more than just numbers. Every product we export to the world translates to thousands of Australian jobs.”
The deal establishes “modern, flexible and trade-facilitating outcomes” with the UAE on rules of origin and commitments for customs procedures, according to the Australian government.
Federal minister for agriculture, fisheries and forestry Jule Collins said the deal is “an excellent outcome” for her sector.
“It further enhances market access and diversification opportunities for our producers to an extremely lucrative market, not only in the UAE but across the whole of the Middle East as the UAE is an important trading hub for the region,” Ms Collins said.
“I am proud to say that it is the first FTA to contain a standalone chapter on sustainable agriculture and food systems, recognising agriculture’s essential role in ensuring food security, driving climate resilience, emissions reductions and other environmental outcomes.
“It also ensures that sustainability measures are not applied with a one-size fits all approach and do not create barriers to trade for our world class agricultural exports.
“In 2023-24, Australia exported over 70% of its agricultural, fisheries and forestry production to 169 markets globally – the most diversified trade has ever been.”
