The UAE and New Zealand are set to strengthen their economic ties with the commencement of negotiations for a Comprehensive Economic Partnership Agreement (CEPA).

This agreement aims to substantially enhance trade and investment between the two nations, signed by Dr. Thani bin Ahmed Al Zeyoudi, UAE’s Minister of Foreign Trade, and Todd McClay, New Zealand’s Trade Minister.

The development signifies a burgeoning partnership. Non-oil trade between the UAE and New Zealand surged to $764.5 million in 2023, an increase of over 15% compared to pre-pandemic levels in 2019.

The CEPA aims to bolster this growth by reducing or eliminating tariffs and trade barriers, streamlining market access for businesses, and establishing pathways for investment in crucial sectors such as agriculture, renewable energy, and healthcare.

“New Zealand has become a valued trade partner for the UAE,” said Dr. Al Zeyoudi, adding that the “agreement will open up a range of exciting opportunities for both nations, with the UAE offering direct access to new markets for New Zealand’s exports, while our services exporters and investors will be able to explore a range of high-value sectors. We are both eager to get started.”

McClay echoed Dr. Al Zeyoudi’s enthusiasm, calling the partnership an “exciting step towards cementing a significant trade and economic relationship.” 

He stressed the UAE’s position as a vital export destination and hub within the Gulf region, providing “substantial opportunities to strengthen cooperation across various sectors, including agriculture and sustainable energy.”

The agreement aligns with the UAE’s commitment to expanding its non-oil trade, which reached a record $701 billion in 2023. A CEPA with New Zealand is viewed as a vital step toward realizing its ambitious goal of reaching $1.1 trillion by 2031.