Australia’s Trade Ministry said deal will eliminate tariffs on about 99% of the country’s products Bilateral non-oil trade between UAE and Australia reached $2.3 billion in first half of 2024 RIYADH: Australia has finalized a Comprehensive Economic Partnership Agreement with the UAE, which could boost its exports by A$678 million ($458 million) annually. In a press statement, Australia’s Trade Ministry said the deal will eliminate tariffs on about 99 percent of the country’s products, leading to savings of A$135 million in the first year and increasing to A$160 million annually once fully implemented. As Australia’s first trade agreement with a country in the Middle East and North Africa region, the CEPA aims to enhance bilateral trade and investment by streamlining trade processes, removing tariffs on a wide range of goods and services, and encouraging private-sector collaboration in key sectors. The agreement builds on the strengthening economic ties between the UAE and the southern hemisphere country with bilateral non-oil trade reaching $2.3 billion in the first half of 2024 — a 10 percent increase from the same period in 2023. Australia’s Trade Minister Don Farrell stated that, as a trading nation, the country is committed to opening up new opportunities for its exporters, farmers, producers, and businesses. “Under this trade agreement, Australian exports are expected to increase by $460 million per year, but this deal means more for Australia than just numbers. A trade agreement with the UAE will facilitate investment into key sectors, which is important to achieving our ambition of becoming a renewable energy superpower,” added Farrell. The trade agreement is also expected to unlock UAE investment in sectors such as renewable energy and the supply chain for critical minerals, thereby catalyzing Australia’s energy transition. “More trade means more higher-paying jobs, more opportunities for our businesses, greater investment to build things here in Australia, and cheaper bills for Australian households,” explained Farrell. The UAE is the country’s top trade partner in the Middle East and 20th globally. By 2023, the two nations had committed $14 billion to each other’s economies, with over 300 Australian businesses active in sectors including construction, financial services, agriculture, and education. “This CEPA will unlock significant opportunities for UAE businesses and provide Australian companies with a gateway to new markets across the MENA region. I look forward to collaborating with my Australian counterpart to swiftly ratify the CEPA and deliver its benefits,” said UAE Trade Minister Thani bin Ahmed Al-Zeyoudi. He added: “This milestone not only reaffirms our commitment to building strong relations with key partners, but to expanding the reach of our trading network into key regions such as Asia-Pacific.” According to the statement, the agreement is expected to benefit Australian farmers and food producers, with estimated tariff savings of A$50 million annually for the country’s food and agriculture exports. It also includes a framework to boost UAE investment in critical minerals, aiding the mining industry through tariff cuts on alumina exports. Australia’s Trade Ministry noted that the agreement would reduce import tariffs on UAE-produced furniture, copper wire, glass containers, and plastic, resulting in lower costs for businesses and households, with estimated savings of around $40 million a year. The deal encompasses commitments to promote labor rights, protect the environment, and ensure sustainable development. Australia and the UAE are working to finalize the legal treaty text, which is expected to be signed later this year.