New Zealand and UAE Forge Free Trade Agreement

Synopsis

On January 15, New Zealand signed a historic Free Trade Agreement with the UAE, its first in the Gulf, enhancing trade ties and export opportunities. This agreement promises significant tariff reductions and aims to double New Zealand's exports in the coming decade.

Key Takeaways

New Zealand signs its first FTA in the Gulf region.
Annual trade valued at 1.3 billion NZ dollars.
CEPA to boost export growth for New Zealand companies.
98.5% of tariffs on exports eliminated upon agreement.
Fastest trade negotiations completed in just over four months.

Wellington, Jan 15 (NationPress) New Zealand has formalized a Free Trade Agreement (FTA) with the United Arab Emirates (UAE), marking it as one of New Zealand's most significant markets in the Middle East and the country's inaugural trade deal in the Gulf region.

The trade agreement, along with the corresponding investment treaty known as the Comprehensive Economic Partnership Agreement (CEPA), was officially signed on Tuesday in Abu Dhabi, the capital of the UAE, as reported by the Xinhua news agency.

According to the latest update from the New Zealand Ministry of Foreign Affairs and Trade, key exports from New Zealand to the UAE consist of dairy, industrial products, meat, horticultural goods, and travel services.

"The UAE's vibrant and high-value market presents substantial opportunities for export growth and diversification for New Zealand businesses," the ministry stated.

The annual value of two-way trade between New Zealand and the UAE stands at 1.3 billion NZ dollars (approximately $730 million), a figure expected to increase once the CEPA is implemented later this year, according to New Zealand Prime Minister Christopher Luxon.

The government of New Zealand is targeting a doubling of export values within a decade, with Luxon emphasizing that the CEPA ensures preferential access for Kiwi primary sector exporters and reinforces supply chains with a crucial partner in the Gulf region.

New Zealand Trade Minister Todd McClay mentioned that upon the agreement's activation, tariffs on 98.5% of Kiwi exports to the UAE would be eliminated immediately, with that number projected to reach 99% within three years.

Trade negotiations between New Zealand and the UAE were concluded last September in just over four months, marking the quickest free trade agreement negotiation achieved by New Zealand with any of its trading partners.