UAE and Chile Sign Important Trade Agreement in Abu Dhabi
The United Arab Emirates (UAE) and the Republic of Chile have signed a Comprehensive Economic Partnership Agreement (CEPA) in Abu Dhabi. This agreement aims to deepen economic collaboration between the two countries.
Key Figures and Ceremony
The agreement was signed by Dr. Thani bin Ahmed Al Zeyoudi, UAE’s Minister of State for Foreign Trade, and Alberto van Klaveren, Chile’s Minister of Foreign Affairs. The signing took place during an official visit by Chile’s President Gabriel Boric, who was received by UAE President His Highness Sheikh Mohamed bin Zayed Al Nahyan.
Benefits of the Agreement
The CEPA will eliminate or reduce customs duties on 99.5% of the value of UAE’s imports from Chile, open market access to services exports, and facilitate investment and joint ventures. It is projected to increase non-oil bilateral trade to $750 million by 2030, more than doubling the $306 million shared in 2023. Additionally, UAE exports are expected to rise by $247 million by 2030.
Statements from Officials
Dr. Thani bin Ahmed Al Zeyoudi highlighted the significance of the deal, stating, “The UAE-Chile CEPA is a significant step forward for our foreign trade ambitions and consolidates our growing relationship with South America.” He emphasized the opportunities in sectors like manufacturing, mining, financial services, renewable energy, tourism, and agriculture.
Alberto van Klaveren noted, “This Agreement is very relevant for Chile. It is Chile’s first Trade Agreement with a country in the Middle East and the Gulf in particular.” He expressed confidence that the CEPA would substantially impact bilateral trade and facilitate future investment agreements.
Economic Context
Chile is the fourth-largest economy in South America and the world’s largest copper producer. The UAE is already an active investor in Chile, with investments in fruit production, real estate, and transport. The UAE-Chile CEPA is the second deal the UAE has signed with a South American nation this year, following a similar agreement with Colombia in April.
The CEPA program, launched in September 2021, is a key part of the UAE’s growth and diversification efforts. In 2023, the UAE’s non-oil trade in goods reached an all-time high of $701 billion, a 12.6% increase from 2022.
Doubts Revealed
UAE -: UAE stands for the United Arab Emirates, a country in the Middle East made up of seven smaller regions called emirates.
Chile -: Chile is a long, narrow country on the western edge of South America, known for its beautiful landscapes and rich culture.
Trade Agreement -: A trade agreement is a deal between two or more countries to make it easier to buy and sell goods and services to each other.
Abu Dhabi -: Abu Dhabi is the capital city of the UAE and one of its seven emirates. It’s a very important city for business and government.
Comprehensive Economic Partnership Agreement (CEPA) -: CEPA is a special type of trade agreement that covers many areas of economic cooperation, like reducing taxes on goods and services traded between countries.
Dr. Thani bin Ahmed Al Zeyoudi -: Dr. Thani bin Ahmed Al Zeyoudi is a government official in the UAE who works on trade and economic matters.
Alberto van Klaveren -: Alberto van Klaveren is a government official from Chile who helps manage the country’s international relations and trade.
Customs Duties -: Customs duties are taxes that countries charge on goods coming in from other countries. Reducing these taxes makes it cheaper to trade.
Non-oil bilateral trade -: Non-oil bilateral trade means the buying and selling of goods and services between two countries, not including oil products.
$750 million by 2030 -: This means that the trade between the UAE and Chile, excluding oil, could be worth 750 million US dollars by the year 2030.
Middle Eastern country -: A Middle Eastern country is a nation located in the region of the world that includes countries like the UAE, Saudi Arabia, and Egypt.