UAE and Morocco Sign New Trade Agreement to Boost Economic Ties
The United Arab Emirates (UAE) and the Kingdom of Morocco have finalized a Comprehensive Economic Partnership Agreement (CEPA) to enhance trade and investment between the two countries. The agreement was signed by Dr. Thani bin Ahmed Al Zeyoudi, UAE’s Minister of State for Foreign Trade, and Ryad Mezzour, Morocco’s Minister of Industry and Trade.
Upon implementation, the UAE-Morocco CEPA will reduce or remove tariffs, eliminate unnecessary trade barriers, improve market access for services, enhance customs harmonization, and establish flexible rules of origin for goods. It will also create platforms for investment and private-sector collaboration in key sectors such as renewable energy, tourism, infrastructure, mining, food security, transport, logistics, and ICT.
In 2023, the two nations shared USD 1.3 billion in non-oil trade, marking a 30% increase from 2022 and an 83% rise from 2019. The UAE is the largest Arab investor in Morocco, with over USD 15 billion invested in various strategic projects.
Dr. Thani bin Ahmed Al Zeyoudi expressed his enthusiasm for the agreement, stating, “The UAE-Morocco Comprehensive Economic Partnership Agreement is a valuable addition to our CEPA program. Our two brotherly nations already enjoy strong bilateral economic relations, and this agreement will enable us to further develop areas of mutual benefit, particularly in sectors such as tourism, energy, manufacturing, and agriculture, and generate long-term prosperity for both peoples.”
Ryad Mezzour added, “I signed today with my brother, Thani bin Ahmed Al Zeyoudi, a joint declaration announcing the conclusion of negotiations between our two countries on a Comprehensive Economic Partnership Agreement. This agreement aims to support the development of trade and investment by opening new opportunities to upgrade the level of joint cooperation in economic and commercial fields.”
Morocco is the sixth largest economy in Africa, with a GDP of USD 152.4 billion in 2023, expected to grow by 3.5% in 2024. The UAE’s CEPA program aims to increase the country’s non-oil foreign trade to AED 4 trillion by expanding relations with strategically important markets worldwide. In 2023, the UAE’s non-oil trade in goods reached an all-time high of USD 710 billion, a 12.6% increase from 2022.
Morocco is the latest African nation to conclude CEPA terms with the UAE, following Mauritius, Kenya, and Congo-Brazzaville.
Doubts Revealed
UAE -: UAE stands for the United Arab Emirates. It is a country in the Middle East, made up of seven smaller regions called emirates.
Morocco -: Morocco is a country in North Africa. It is known for its rich culture, history, and beautiful landscapes.
Trade Agreement -: A trade agreement is a deal between two or more countries to make it easier to buy and sell goods and services between them.
Economic Ties -: Economic ties refer to the financial and trade relationships between countries. It means how they work together to improve their economies.
Comprehensive Economic Partnership Agreement (CEPA) -: CEPA is a special type of trade agreement that covers many areas like trade, investment, and cooperation in different sectors.
Dr. Thani bin Ahmed Al Zeyoudi -: Dr. Thani bin Ahmed Al Zeyoudi is a government official from the UAE. He works on matters related to trade and the economy.
Ryad Mezzour -: Ryad Mezzour is a government official from Morocco. He also works on trade and economic issues.
Tariffs -: Tariffs are taxes that countries put on goods coming in from other countries. Reducing tariffs makes it cheaper to trade.
Market Access -: Market access means how easy it is for one country to sell its goods and services in another country.
Renewable Energy -: Renewable energy comes from natural sources that can be used again and again, like sunlight, wind, and water.
Tourism -: Tourism is when people travel to different places for fun, adventure, or relaxation.
Non-oil trade -: Non-oil trade refers to buying and selling goods and services that are not related to oil. It includes things like food, clothes, and technology.
Arab investor -: An Arab investor is a person or company from an Arab country that puts money into projects or businesses in another country.