Government accelerates new NZ-UAE Trade Agreement
In a landmark achievement for international trade relations, New Zealand and the United Arab Emirates (UAE) have successfully concluded negotiations on a Comprehensive Economic Partnership Agreement (CEPA). This agreement, finalized in just over four months, stands as New Zealand's fastest-ever trade negotiation, underscoring the commitment of both nations to strengthen economic ties and foster mutual growth.
Key Highlights of the Agreement
The CEPA is designed to significantly enhance trade between New Zealand and the UAE by eliminating tariffs on a vast majority of goods. Specifically, duties on 98.5% of New Zealand's exports to the UAE will be removed immediately upon the agreement's entry into force, with this figure rising to 99% within three years. This development is poised to benefit key sectors such as dairy, industrial products, meat, and horticulture, which are among New Zealand's primary exports to the UAE.
Trade Minister Todd McClay highlighted the significance of this deal, stating, "This will create new opportunities for New Zealand businesses in the dynamic UAE market, contributing to our ambitious target of doubling exports by value in 10 years."
Strategic Importance
The UAE serves as a crucial hub in the Gulf region and is one of New Zealand's largest markets in the Middle East. In the year leading up to June 2024, two-way trade between the two countries was valued at NZ$1.3 billion, reflecting the robust nature of their economic relationship.
The swift conclusion of the CEPA negotiations not only demonstrates the strong bilateral ties but also sets a precedent for future trade agreements. It is anticipated that this deal will pave the way for deeper economic integration and collaboration in areas beyond traditional trade, including investment and technology transfer.
Next Steps
With the agreement signed, both nations will undertake their respective legal and parliamentary processes to bring the CEPA into force. For New Zealand, this involves a thorough examination by the Foreign Affairs, Defence, and Trade Committee, providing an opportunity for public submissions and ensuring that the agreement aligns with national interests.
As the global economic landscape continues to evolve, the New Zealand-UAE CEPA stands as a testament to the importance of proactive and collaborative trade partnerships. This agreement not only promises to enhance economic prosperity for both nations but also reinforces their commitment to open and free trade in an increasingly interconnected world.
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