New Zealand has signed a first-class free trade and investment treaty with the United Arab Emirates (UAE).
In Abu Dhabi, together with UAE President His Highness Sheikh Mohammed bin Zayed, New Zealand Prime Minister Christopher Luxon witnessed the signing of the Comprehensive Economic Partnership Agreement (CEPA) and accompanying investment treaty by Trade Minister Todd McClay and his UAE counterpart, the Minister of State for Foreign Trade Dr Thani bin Ahmed Al Zeyoudi.
“Securing trade deals for our exporters has been a top priority for my government as we aim to double the value of our exports in ten years,” said Luxon.
“The CEPA will unlock economic opportunities for Kiwi businesses, secure preferential access for primary sector exporters, and strengthen supply chains with a key partner in the Gulf region.”
Two-way trade between New Zealand and the UAE is valued at NZD 1.3 billion annually but will grow when CEPA comes into force.
Duties on 98.5 percent of New Zealand’s exports to the UAE will be eliminated immediately upon entry into force. They will rise to 99 percent within three years, contributing to the country’s ambitious target of doubling exports by value in ten years.
McClay said they were committed to working closely with the UAE to bring the CEPA into force as soon as possible and ensure it quickly benefited both sides.
The CEPA negotiations concluded in just over four months, making this New Zealand’s fastest-ever free trade agreement negotiation.
“This is our first trade agreement in the Gulf region and is a testament to Todd McClay’s hard work here and around the world. This is a significant step towards growing our trade and economic relationship,” said Luxon.
New Zealand’s top exports to the UAE are dairy (NZD 707 million), industrial products (NZD 242 million), meat (NZD 50 million), horticulture (NZD 47 million), and tourism (NZD 33 million).
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