UAE and Chile: Paving the Way for a Comprehensive Economic Partnership

Strengthening Ties for Mutual Growth

The recent visit of Chilean President Gabriel Boric to the United Arab Emirates (UAE) marks a historic milestone in the diplomatic relations between the two nations, established in 1978. This visit is not only significant as it is the first official trip by a Chilean president to the UAE, but it also serves as a platform for announcing a Comprehensive Economic Partnership Agreement (CEPA) aimed at enhancing bilateral trade and cooperation across various sectors.

The CEPA is expected to transform the economic landscape between the UAE and Chile, fostering a robust partnership that aligns with the strategic goals of both countries. As the UAE seeks to expand its economic footprint in Latin America, Chile emerges as a key partner, providing access to a rapidly growing market with a population exceeding 800 million across the region.

A Historic Visit

President Boric’s visit to the UAE is a significant step forward in strengthening bilateral relations. UAE Ambassador to Chile, Mohamed Saeed Al Neyadi, emphasized that this visit embodies the depth of the relationship founded on mutual understanding and shared interests. The discussions during this visit are anticipated to focus on various sectors, including trade, investment, climate change, and sustainable development.

The UAE has been actively pursuing comprehensive economic partnerships with countries across the globe, and the agreement with Chile is a testament to its commitment to fostering international trade relations. The successful conclusion of the CEPA negotiations, announced during Boric’s visit, is expected to stimulate sustainable growth and enhance economic cooperation between the two nations.

Economic Opportunities and Growth

The CEPA is set to eliminate trade barriers, improve market access for goods and services, and create new opportunities for cooperation on trade and investment matters. The volume of non-oil trade between the UAE and Chile reached approximately $305.1 million in 2023, reflecting a remarkable growth of 23.6% since 2019. This figure underscores the potential for further expansion as the CEPA opens new avenues for trade.

Dr. Thani Bin Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade, highlighted that the agreement will enable Emirati companies to tap into the vibrant economies of Chile and Latin America. This partnership is not only about boosting trade; it is also about fostering mutual investments that can lead to job creation and economic diversification in both countries.

Shared Goals in Sustainability

Both the UAE and Chile share a commitment to addressing climate challenges and achieving sustainable development goals. The UAE’s ambition to reach climate neutrality by 2050 aligns with Chile’s leadership role in global climate initiatives, including its hosting of COP25 in 2019. This shared vision presents opportunities for collaboration in renewable energy, food security, and environmental sustainability.

The CEPA is expected to facilitate joint projects that leverage the strengths of both nations in these critical areas. By working together, the UAE and Chile can not only enhance their economic ties but also contribute to global efforts in combating climate change and promoting sustainable practices.

The official visit of President Gabriel Boric to the UAE and the subsequent signing of the Comprehensive Economic Partnership Agreement signify a new era of cooperation between Chile and the UAE. This partnership is poised to enhance trade, stimulate economic growth, and foster sustainable development, benefiting both nations and their peoples.

As the UAE continues to strengthen its economic ties with Latin America, the CEPA with Chile serves as a model for future collaborations. The commitment of both countries to work together in various sectors will undoubtedly pave the way for a prosperous and sustainable future, reinforcing their positions as vital players in the global economy.