Partnership agreement to expand trade and investment with the UAE

TRADE relationships and export opportunities between Australia and the United Arab Emirates are expected to grow under a potential comprehensive economic partnership agreement (CEPA).

The CEPA is a bilateral free trade agreement with the potential to strengthen the dynamic relationship between the two countries.

Australia and the UAE agreed to pursue their common interest to negotiate the CEPA in February this year.

The agreement aims to provide greater market access for goods and services, enhance investment flows, and provide additional opportunities for economic and technical co-operation.

Dan Tehan, minister for trade, tourism and investment, said the UAE is Australia’s largest trade and investment partner in the Middle East.

It is also Australia’s 19^th largest export market globally for goods and services.

“The UAE is Australia’s gateway to the Middle East and presents an opportunity for greater trade diversification,” he said.

In 2020, two-way trade between Australia and the UAE was worth $6.8 billion and two-way investment $16 billion.

“Australia has more than 300 key businesses operating in the UAE, including in building, construction, financial services, agricultural supplies and training services,” Mr Tehan said.

He said the CEPA would create more opportunities for Australian businesses and workers.

“A UAE CEPA would also be an important building block to a subsequent potential free trade agreement with the wider Gulf Cooperation Council.”

The Gulf Cooperation Council is an economic union comprising Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, as well as the UAE.

Australia and the UAE have agreed to undertake preparatory discussions and domestic consultations as soon as possible, with a view to commencing formal trade negotiations in the near future.

The Australian government is accepting stakeholder submissions on how the CEPA might benefit Australian businesses.

The government is also receiving submissions to help inform a potential future resumption of negotiations on a free trade agreement with the Gulf Cooperation Council.