Australia Secures Landmark Free Trade Deal with the United Arab Emirates

In a significant boost for Australian exporters, the Australian government has successfully concluded negotiations on the Australia-United Arab Emirates Comprehensive Economic Partnership Agreement (CEPA). Announced by Minister for Trade and Tourism, Senator Don Farrell, this agreement opens up new avenues for trade and investment, promising substantial economic benefits for both countries.

A Game-Changer for Australian Exports

With two-way trade between Australia and the UAE already valued at $9.9 billion in 2023, the new CEPA is set to further strengthen this partnership. Under the agreement, Aussie exports are projected to increase by $678 million annually, but the implications extend far beyond mere numbers.

Key Benefits of the Agreement

• Tariff Reductions: Over 99% of Australian products will enter the UAE tariff-free. This is expected to yield estimated tariff savings of $135 million in the first year, increasing to $160 million annually as the agreement is fully implemented.
• Boost to Farmers and Producers: The deal is particularly beneficial for Australian farmers and food producers, with $50 million in annual tariff savings anticipated for agricultural exports, including meat, dairy, and seafood.
• Investment Opportunities: The agreement includes provisions designed to encourage two-way investment, especially in critical sectors such as energy transition and mining. Australia’s mining industry stands to gain significantly, particularly with tariff cuts on key exports like alumina, which was valued at $1 billion in 2023.
• Consumer Savings: Australian households and businesses are projected to save around $40 million annually through reduced import tariffs on UAE products, including furniture and glass containers.

Expanding Market Access

The UAE represents a strategic market with around 58 million consumers and a combined GDP of A$1.4 trillion. This trade agreement acts as a gateway for Australian businesses to diversify into this burgeoning market, fostering greater economic resilience.

Promoting Sustainable Trade

Notably, the CEPA also emphasizes commitments to labour rights, environmental protection, and sustainable development. Australia’s right to regulate at all levels of government is preserved, ensuring that economic growth aligns with ethical standards.

First Nations Trade

A standout feature of this agreement is its commitment to First Nations trade. This is Australia’s first trade deal to include a dedicated chapter addressing First Nations businesses, providing them with preferential market access and rules to facilitate exports to the UAE.

Looking Ahead

As both nations prepare to formalize the legal treaty text for signing later this year, the Australian government is optimistic about the future. Minister Farrell encapsulated the spirit of the agreement, stating, “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.”

This trade deal not only marks a pivotal moment in Australia’s economic strategy but also highlights the Albanese Government’s commitment to opening new avenues for growth and prosperity.

Conclusion

The Australia-UAE Comprehensive Economic Partnership Agreement is more than just a trade agreement; it’s a strategic initiative designed to enhance economic ties, boost exports, and create jobs. As Australia positions itself for a post-pandemic recovery, this deal promises to deliver real benefits for businesses, consumers, and communities alike.


For more information on the Australia-UAE CEPA, click here.