THE FEDERAL Government has announced it has secured a trade deal with the United Arab Emirates, Australia’s largest trade and investment partner in the Middle East.
Don Farrell, the Minister for Trade and Tourism announced that negotiations on the Australia-United Arab Emirates Comprehensive Economic Partnership Agreement had concluded.
Mr Farrell said the trade agreement provides a gateway for Australian exporters to diversify into the Middle East, a market of around 58 million consumers and a combined GDP of AUD$1.4 trillion.
An important partner, two way trade between Australia and the UAE was worth AUD$9.9 billion in 2023, with two-way investment AUD$20.6 billion in the same year, the government expecting that to increase significantly.
Key Australian exports to the UAE include alumina, meat, dairy, oil seeds, seafood, steel, canola seeds, nuts, honey, coal, chickpeas, lentils and higher education.
The Minister has hailed the new trade agreement as a “great deal” for Australian exporters.
Senator Farrell said over 99 percent of Australian products will enter the UAE tariff free, resulting in estimated tariff savings of AUD$135 million in the first year, rising to AUD$160 million per year once the agreement is fully implemented.
The agreement will aim to deliver benefits for Australian farmers and food producers, with estimated tariff savings of AUD$50 million per year for Australian food and agriculture exports.
Senator Farrell said Australia is a trading nation, and the Government is delivering on its commitment to open up new opportunities for Australian exporters, farmers, producers and businesses to diversify their markets.
“The UAE has some of the largest Sovereign Wealth Funds in the world. A trade agreement with the UAE will facilitate investment, which is important to achieving the Albanese Government’s ambition of becoming a renewable energy superpower,” Senator Farrell said.
“Under this trade agreement, Aussie exports are expected to increase by AUD$678 million per year, but this deal means more for Australia than just numbers.
“More trade means more higher-paying jobs, more opportunities for our businesses, greater investment to build things here in Australia, and cheaper bills for Australian households.”
Australia and the UAE are now reportedly both working to formalise the legal treaty text in preparation for signing later this year.
