NZ and UAE Conclude Landmark Trade Agreement, Opening Doors for Kiwi Exporters

In addition to tariff eliminations, the CEPA includes provisions that will benefit sectors such as professional services, education, engineering, environmental services, and New Zealand’s growing audio-visual and gaming industries.

New Zealand and the United Arab Emirates (UAE) have successfully concluded negotiations on a Comprehensive Economic Partnership Agreement (CEPA), which will open up significant opportunities for Kiwi exporters and strengthen supply chains with a key partner in the Gulf region. The agreement was finalized in just over four months, making it the fastest trade deal negotiation in New Zealand’s history.

"This agreement demonstrates the Government’s commitment to reducing costs and barriers for Kiwi exporters," said Trade Minister Todd McClay, following discussions with UAE Minister of State for Foreign Trade, Dr Thani bin Ahmed Al Zeyoudi.

Immediate Economic Benefits

The CEPA will eliminate duties on 98.5% of New Zealand's exports to the UAE immediately, rising to 99% within three years, creating vast new opportunities for New Zealand businesses in the growing UAE market. This is a significant step towards New Zealand’s goal of doubling export value over the next decade.

The UAE is a vital trading partner, with two-way trade valued at NZ$1.3 billion in the year to June 2024. Major New Zealand exports to the UAE include dairy (NZ$718 million), industrial products (NZ$237 million), and red meat (NZ$46 million).

Strategic Gains Beyond Tariffs

In addition to tariff eliminations, the CEPA includes provisions that will benefit sectors such as professional services, education, engineering, environmental services, and New Zealand’s growing audio-visual and gaming industries.

The agreement also provides a framework for boosting two-way investment through an Investment Facilitation chapter and a new Bilateral Investment Treaty. Importantly, the deal excludes Investor-State Dispute Settlement (ISDS) clauses, providing a balanced approach to investment protection.

Broader Impact and Sustainability Focus

The CEPA features chapters on sustainable development, labour, climate, and indigenous trade, including protections for New Zealand’s Treaty of Waitangi obligations. This marks a progressive step in ensuring that the agreement is not only economically beneficial but also socially and environmentally responsible.

Dr. Al Zeyoudi praised New Zealand as a "long-standing and highly valued trade partner," emphasizing that the CEPA would further strengthen bilateral relations and enhance private-sector opportunities in both countries.

This historic trade deal is set to boost New Zealand’s export capabilities while enhancing the nation’s strategic position in the Gulf region, offering long-term prosperity for both New Zealand and the UAE.