- Hon Todd McClay
New Zealand and the United Arab Emirates have concluded negotiations on a trade agreement, which will unlock economic opportunities for Kiwi exporters and create stronger supply chains with one of our most important trading partners in the Gulf region.
This agreement was concluded in just over 4 months following the launch of negotiations on 7 May this year, making this New Zealand's fastest-ever trade agreement negotiation, and the most trade liberalising of any of the UAE's CEPAs to date.
"This shows the Government's commitment to opening doors and reducing costs and barriers for Kiwi exporters," Mr McClay says.
The announcement follows formal talks between Trade Minister Todd McClay and his UAE counterpart Minister of State for Foreign Trade Dr Thani bin Ahmed Al Zeyoudi in Wellington.
"Our Comprehensive Economic Partnership Agreement (CEPA) with the UAE will eliminate duties on 98.5 per cent of New Zealand's exports immediately on entry into force, rising to 99 per cent within three years. This will create new opportunities for New Zealand businesses in the dynamic UAE market, contributing to our ambitious target of doubling exports by value in ten years," Mr McClay says.
"The UAE is a key export destination and hub in the Gulf region. In the year to June 2024, two-way trade was valued at NZ$1.3 billion. The UAE is one of our largest markets in the Middle East, and a top 20 export market overall."
New Zealand dairy exports to the UAE amounted to $718 million, industrial products $237 million, red meat $46 million, horticulture $44 million, and tourism $31 million.
New Zealand imported $152 million of products and services from the UAE over the same period, including plastics, carpets, travel services and glass.
In addition to removing tariffs, the CEPA includes new commitments which will provide greater certainty for New Zealand services exporters when operating in the UAE.
The CEPA's Investment Facilitation chapter, and a Bilateral Investment Treaty concluded alongside the CEPA, will together provide a framework for broadening and strengthening our investment relationship and help increase two-way investment with the UAE. The agreement does not include Investor-State Dispute Settlement (ISDS).
Professional services, education services, and the audio-visual and gaming sectors, as well as engineering and environmental services will all benefit from this Agreement.
The CEPA also includes chapters on intellectual property, sustainable development, labour, sustainable agriculture, climate, and on indigenous trade. We have also secured New Zealand's Treaty of Waitangi exception to allow us to meet treaty obligations.
H.E. Dr Al Zeyoudi says New Zealand is a long-standing and highly valued trade partner of the UAE.
"The Comprehensive Economic Partnership Agreement will further strengthen our bilateral relations and boost private-sector opportunity in both nations. The conclusion of our CEPA is also an important step forward in realizing our shared ambition to secure long-term prosperity for our peoples and nations alike."
