UAE Comprehensive Economic Partnership Agreements Break New Ground in 2023

Dr. Thani Al Zeyoudi, Minister of State for Foreign Tradesaid the UAE Comprehensive Economic Partnership Agreement (CEPA) has enjoyed exponential growth in 2023, with three agreements implemented, two more signed and awaiting implementation, and four agreed, bringing the total number of CEPA partners since the program’s launch to 10 across four continents .

This, he said, represents a substantial expansion of the UAE’s foreign trade network and promises to create more opportunities for the country’s private sector in some of the world’s most dynamic economies.

In the course of a crucial year for trade, the UAE’s CEPAs with Türkiye, Indonesia and Israel came into force, removing or reducing tariffs, removing barriers to trade and opening market opportunities for exporters and investors.

In addition, CEPAs were signed with the emerging economies of Cambodia and Georgia, which will be implemented in the first half of 2024, while terms for CEPA were also agreed with South Korea, Colombia, Mauritius and Congo-Brazzaville.

The UAE also launched CEPA negotiations with several other countries, including Serbia, Ukraine, Eurasia, Australia, the Philippines, Malaysia, Costa Rica, Kenya, Chile and Vietnam.

The CEPA programme, which also includes the partnership with India that was enacted in May 2022, is expected to increase UAE exports by 33% and contribute more than AED 153 billion to the national GDP by 2031, which represents growth of almost 10 percent in 2022.

He also noted that the flagship CEPA program has secured access to markets representing almost 2 billion people, a quarter of the world’s population, and will provide long-term benefits to the UAE economy.

“Trade has always been important to the UAE, a bridge that has connected our products, skills and natural resources to the world and infused our economy with its latest ideas and innovations. As underlined by the “We, the UAE 2031” vision, trade is now a cornerstone of our economic development and diversification ambitions.

“Over the past 12 months, trade has become an engine of unprecedented growth, a pillar of economic policy, a lynchpin of foreign relations and, at the recently concluded COP28, a new front in the battle against change.” climate.

“Trade is now a central component of the UAE’s domestic success and, as we prepare to host the 13th Ministerial Conference of the World Trade Organization in February, international influence increases. Reflecting on the achievements of the past year, we believe that “The UAE has the conviction and credibility to help shape a new future for global trade.”

Al Zeyoudi He also highlighted that in the first half of 2023, the UAE’s non-oil foreign trade reached an all-time high of AED 1.24 trillion, and exports increased to AED 205 billion, another record.

In addition to the success of its CEPA programme, the UAE has further cemented its reputation as a champion of open and inclusive trade in 2023, with a series of new initiatives aimed at facilitating and modernizing trade.

In January, the United Arab Emirates launched the Business technology initiative with the World Economic Forum (WEF) in Davos, which is designed to accelerate the digitalization of international supply chains, improving customs procedures and improving developing countries’ access to the global trading system.

The United Arab Emirates has also implemented a new Services export strategy This is creating new market opportunities for the UAE’s services trade, which already accounts for 2.2% of total global services trade.

Additionally, the UAE launched a new re-export program that will expand the companies’ geographical reach using the UAE’s world-class infrastructure and strategic location as a global logistics hub to re-export products around the world. The re-export sector in the UAE contributes 6.6% to the country’s GDP and creates approximately 1.3 million jobs.

At COP28, the UAE played a key role in securing the inclusion of an official Trade Day for the first time, facilitating a full day of discussions on how the public and private sectors can work together to achieve a cleaner, smarter trading system. and inclusive. .

In February 2024, the UAE will host the world’s top trade decision-making body, the 13th World Trade Organization Ministerial Conference (MC13), in which member countries, international trade organizations and institutions will gather in Abu Dhabi for a pivotal meeting on the future of global trade.

Al Zeyoudi He stressed that, in his position as President of CM13, he will defend the benefits of the expansion and modernization of trade and its role in achieving inclusive and sustainable development, especially for developing countries.

News source: Emirates News Agency