In a move to strengthen their economic partnership, the UAE and New Zealand have signed a Comprehensive Economic Partnership Agreement (CEPA). This groundbreaking deal is expected to significantly enhance trade, streamline customs, and open new avenues for investment between the two nations.
A Strategic Alliance for Economic Growth
The agreement was formalized in the presence of UAE President His Highness Sheikh Mohamed bin Zayed Al Nahyan and New Zealand Prime Minister His Excellency Christopher Luxon at the Abu Dhabi National Exhibition Centre (ADNEC). Signing on behalf of their nations were His Excellency Dr. Thani bin Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade, and His Excellency Hon Todd McClay, New Zealand Minister for Trade.
By reducing trade barriers and optimizing customs processes, the CEPA lays the groundwork for enhanced collaboration, fostering robust economic ties that align with both nations’ long-term growth strategies.
Strengthening UAE’s Ties with Asia-Pacific
Highlighting the agreement’s importance, His Highness Sheikh Mohamed bin Zayed noted that the CEPA represents a crucial step in the UAE’s efforts to connect with the dynamic Asia-Pacific region. This partnership emphasizes building innovative, knowledge-driven economies that focus on resilience and future-readiness.
Rising Trade Figures
The agreement comes amid growing economic activity between the two nations. Bilateral non-oil trade reached $642 million in the first nine months of 2024, an 8% rise compared to the same period in 2023.
As part of the CEPA, New Zealand will provide 100% duty-free access for UAE imports, while the UAE will extend duty-free access to 98.5% of New Zealand’s products, eventually increasing to 99% within three years.
Ambitious Trade Projections
The UAE-New Zealand CEPA aims to boost bilateral trade to $5 billion by 2032, a significant leap from the $1.5 billion average recorded between 2019 and 2023. Notably, this agreement is New Zealand’s first trade deal with a Middle Eastern nation, marking a milestone in its global trade strategy.
The CEPA also addresses broader areas of collaboration, including indigenous trade, women’s economic empowerment, sustainable development, and transparency, showcasing the UAE’s commitment to progressive economic partnerships.
Enhancing Investment Opportunities
The CEPA is complemented by a Bilateral Investment Treaty designed to strengthen UAE-New Zealand investment relations across sectors. Together, these frameworks aim to create a more dynamic and resilient trade ecosystem.
A Vision for the Future
This partnership aligns with the UAE’s ambitious economic roadmap to achieve $1 trillion in total trade by 2031 and double its GDP to over $800 billion. Since the CEPA initiative’s inception in 2021, the UAE has forged similar agreements with countries across the Middle East, Africa, South America, and Asia, solidifying its role as a global trade hub.
With the UAE-New Zealand CEPA now in place, both nations are poised for a new era of collaboration and prosperity, setting an example of how strategic partnerships can drive mutual growth.
