NZ and UAE Sign Free Trade and Investment Treaty, Strengthening Economic Ties

Historic Comprehensive Economic Partnership Agreement Aims to Double New Zealand’s Exports.

In a historic move to enhance bilateral relations, New Zealand and the United Arab Emirates (UAE) have signed the Comprehensive Economic Partnership Agreement (CEPA) and an accompanying investment treaty. Prime Minister Christopher Luxon and UAE President His Highness Sheikh Mohammed bin Zayed witnessed the signing in Abu Dhabi, with Trade Minister Todd McClay and UAE Minister of State for Foreign Trade Dr. Thani bin Ahmed Al Zeyoudi officiating the agreement.

“This free trade agreement is a monumental milestone for New Zealand, aimed at doubling the value of our exports within the next decade,” Prime Minister Luxon announced.

The trade agreement will unlock significant economic opportunities:

98.5% of New Zealand's exports to the UAE will enjoy duty-free access upon the CEPA’s implementation, increasing to 99% within three years.

Primary sectors, such as dairy, industrial goods, meat, horticulture, and tourism, stand to benefit greatly.

Trade Minister McClay emphasized the agreement's transformative potential: “By eliminating nearly all tariffs, the CEPA aligns perfectly with our ambitious export growth goals and strengthens our trade ties in the Gulf region.”

Accelerated Negotiations and Future Prospects

The CEPA negotiations, completed in just four months, mark New Zealand’s fastest-ever free trade agreement negotiation.

“This is New Zealand’s first trade agreement in the Gulf region and demonstrates our commitment to expanding trade opportunities globally,” Luxon noted.

The agreement complements New Zealand’s broader strategy to strengthen economic resilience and enhance supply chain security in the Gulf Cooperation Council (GCC) countries.

Economic Impacts

Currently, two-way trade between New Zealand and the UAE is valued at NZ$1.3 billion annually, with expectations of substantial growth once CEPA takes effect.

New Zealand’s top exports to the UAE include:

• Dairy products: NZ$707 million annually.
• Industrial goods: NZ$242 million.
• Meat: NZ$50 million.
• Horticulture: NZ$47 million.
• Tourism: NZ$33 million.

Strengthening Bilateral Collaboration

In addition to CEPA, the investment treaty is expected to bolster mutual investments in renewable energy, technology, infrastructure, and agriculture. Both nations are committed to fast-tracking the agreement's enforcement, ensuring benefits are realized promptly.

Looking Ahead

Prime Minister Luxon and Trade Minister McClay highlighted the broader vision of expanding New Zealand's trade footprint globally, with the UAE partnership serving as a key pillar in their strategy to diversify markets.

“This agreement not only strengthens our economic relationship but also enhances our strategic ties with a vital partner in the Gulf region,” Luxon concluded.

Next Steps

The CEPA is expected to come into force in 2025 following parliamentary and legal ratifications in both nations, ushering in a new era of economic collaboration and mutual growth.