Prime Minister Christopher Luxon and UAE President His Highness Sheikh Mohammed bin Zayed Al Nahyan witnessed the signing of the Comprehensive Economic Partnership Agreement (CEPA) and a complementary investment treaty in Abu Dhabi.
The agreement was formalised by New Zealand’s Trade Minister Todd McClay and UAE’s Minister of State for Foreign Trade, Dr. Thani bin Ahmed Al Zeyoudi.
Luxon highlighted the importance of the deal, stating, “Securing trade deals for our exporters has been a top priority for my government as we aim to double the value of our exports in ten years.” The CEPA is expected to open new avenues for Kiwi businesses, providing preferential market access to New Zealand’s primary sector in the Gulf region, thereby strengthening supply chain networks.
Current bilateral trade between New Zealand and the UAE stands at NZ$1.3 billion per year, a figure that is anticipated to increase significantly once the CEPA is enforced.
McClay said the deal meant there were immediate benefits, saying, “Duties on 98.5 percent of our exports to the UAE will be eliminated immediately on entry into force, rising to 99 percent within three years and contributing to our ambitious target of doubling exports by value in ten years.”
Both countries are eager to expedite the implementation of the agreement. “We’re committed to working closely with the UAE to bring the CEPA into force as soon as possible, ensuring it quickly brings benefits to both sides,” McClay added.
The negotiations for the CEPA were completed in just over four months, marking it as New Zealand’s fastest free trade agreement negotiation to date. Luxon commended the effort, crediting McClay’s dedication both at home and abroad.
“This is our first trade agreement in the Gulf region and is testament to Todd McClay’s hard work here and around the world. This is a significant step towards growing our trade and economic relationship,” Luxon said.
New Zealand’s major exports to the UAE include dairy ($707 million), industrial products ($242 million), meat ($50 million), horticulture ($47 million), and tourism ($33 million), all of which are poised to benefit from the new trade pact.
Today is a great day for the future of our economy.
We’ve just signed a trade deal in Abu Dhabi with the UAE government that will eliminate tariffs on 98.5% of our exports to the UAE immediately, growing to 99% within three years.
This is great for Kiwi exporters, whose… pic.twitter.com/1qMEurIgZF
— Christopher Luxon (@chrisluxonmp) January 14, 2025
How are primary exports from New Zealand going to dovetail with the Gene Technology Bill which will swing into action in the near future? Will our meat and milk still be exported as halal?