UAE and New Zealand Sign Historic Economic Partnership Agreement
UAE and New Zealand Sign Historic Economic Partnership Agreement
In Abu Dhabi, UAE President Sheikh Mohamed bin Zayed Al Nahyan and New Zealand Prime Minister Christopher Luxon witnessed the signing of a Comprehensive Economic Partnership Agreement (CEPA) between their countries. The agreement, signed at the Abu Dhabi National Exhibition Centre, aims to reduce trade barriers, improve customs procedures, and boost private sector collaboration and investment.
Key Details of the Agreement
The CEPA was signed by Thani bin Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade, and Todd McClay, New Zealand Minister for Trade. It is expected to significantly enhance economic relations, with bilateral non-oil trade reaching USD 642 million in the first nine months of 2024, an 8% increase from the previous year.
Trade Benefits
Under the agreement, New Zealand will offer 100% duty-free access to imports from the UAE, while the UAE will provide duty-free access to 98.5% of New Zealand products, increasing to 99% within three years. The deal aims to boost bilateral trade to USD 5 billion by 2032.
Broader Implications
This CEPA is New Zealand's first trade agreement with a Middle Eastern nation and one of the UAE's most comprehensive, covering areas like indigenous trade, sustainable development, and women's economic empowerment. It also includes a Bilateral Investment Treaty to strengthen investment ties.
UAE's CEPA Programme
The UAE's CEPA programme, launched in September 2021, is a key part of its growth strategy, targeting USD 1 trillion in trade by 2031. The programme has secured agreements with countries across the Middle East, Africa, Southeast Asia, South America, and Eastern Europe.
Doubts Revealed
UAE
UAE stands for the United Arab Emirates. It is a country in the Middle East, known for its modern cities like Dubai and Abu Dhabi.
New Zealand
New Zealand is a country located in the southwestern Pacific Ocean. It is known for its beautiful landscapes and is made up of two main islands.
Economic Partnership Agreement
An Economic Partnership Agreement is a deal between countries to make it easier to trade goods and services. It usually involves reducing taxes on imports and exports.
Sheikh Mohamed bin Zayed Al Nahyan
Sheikh Mohamed bin Zayed Al Nahyan is the President of the UAE. He is a leader in the country and helps make important decisions.
Christopher Luxon
Christopher Luxon is the Prime Minister of New Zealand. He is the head of the government and represents New Zealand in international matters.
Abu Dhabi
Abu Dhabi is the capital city of the UAE. It is one of the largest and wealthiest cities in the country.
Trade barriers
Trade barriers are rules or taxes that make it harder for countries to buy and sell goods with each other. Reducing them helps increase trade.
Customs procedures
Customs procedures are the steps that goods go through when they enter or leave a country. Improving them can make trade faster and easier.
Duty-free access
Duty-free access means that products can be imported or exported without paying extra taxes. This makes goods cheaper for buyers.
Middle Eastern nation
A Middle Eastern nation is a country located in the Middle East, a region that includes countries like the UAE, Saudi Arabia, and Egypt.
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