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【Ferro-alloys.com】: Australia and the United Arab Emirates (UAE) have signed a bilateral free trade agreement that will lay the groundwork for closer economic ties.

On 6 November, Australia’s largest trade and investment partner in the Middle East and the federal government signed the Australia-UAE Comprehensive Economic Partnership Agreement(CEPA).

The agreement will build on the $9.9 billion in two-way trade between Australia and the UAE in 2023.

It is also expected to result in estimated tariff savings of $135 million in the first year, which is predicted to rise to $160 million per year once the agreement is fully implemented.

When fully implemented, CEPA will eliminate tariffs on over 99% of Australia’s goods exports to the UAE.

Most tariffs will be eliminated or locked in at zero on entry into force, with others eliminated over three or five stages for aluminium, gold, vehicle parts, pharmaceuticals, cosmetics, and jewellery.

CEPA will create greater certainty for Australian services providers in over 120 sectors and sub-sectors. This will include professional services, financial services, and education, among others, wanting to do business in the UAE.

It will also support and promote two-way productive foreign direct investment covering priority sectors such as green and renewable energy, data centres and AI projects, minerals, food and agriculture, and infrastructure development.

• [Editor:Alakay]