New Zealand and UAE Fast-Track Trade Agreement to Boost Exporter Certainty

“I’m grateful to the majority of parties in Parliament for their support of Kiwi exporters and this agreement,” McClay said, expressing his confidence in securing cross-party backing for the legislation.

The New Zealand government is accelerating efforts to ratify the New Zealand–United Arab Emirates (NZ-UAE) Comprehensive Economic Partnership Agreement (CEPA), aiming to provide Kiwi exporters with expanded opportunities and enhanced market certainty. Trade and Investment Minister Todd McClay announced that the CEPA implementation bill had successfully passed its first reading in Parliament today, signaling the government's strong commitment to deepening economic ties between New Zealand and the UAE.

McClay highlighted the importance of this agreement in light of the international challenges New Zealand exporters are currently facing, particularly with the growing trade barriers in the United States. "New Zealand exporters are experiencing heightened tariffs into the US, which is a significant issue. This CEPA will offer them alternative pathways to access key international markets," he said.

In a move to cement the urgency of the deal, McClay mentioned his recent meeting with his UAE counterpart, Minister of State for Foreign Trade, Dr. Thani bin Ahmed Al Zeyoudi, in Abu Dhabi. The discussions between the two ministers centered around implementing the trade agreement as swiftly as possible, with a strong emphasis on tariff elimination and creating sensible trade rules that benefit businesses in both countries.

“I’m grateful to the majority of parties in Parliament for their support of Kiwi exporters and this agreement,” McClay said, expressing his confidence in securing cross-party backing for the legislation. "We are committed to ensuring New Zealand businesses have the certainty they need to thrive in a complex global market."

The CEPA will immediately eliminate duties on 98.5 percent of New Zealand's exports to the UAE, with a goal of achieving 99 percent elimination within three years. This deal represents a significant boost for Kiwi industries, from dairy to wine, as they gain easier access to the UAE market. The agreement also promises improved access for New Zealand services, particularly in areas such as education, tourism, and financial services.

In addition to tariff reductions, the CEPA is designed to tackle non-tariff barriers that have historically hindered trade between the two countries. These barriers often include complex regulatory standards, certification processes, and logistical hurdles that can increase costs for exporters. By addressing these issues, the agreement aims to create a more streamlined and efficient trade environment.

The legislation now moves to the Foreign Affairs, Defence and Trade Committee for further review, with both New Zealand and the UAE eager to see the agreement come into force as soon as possible. The swift passage of the bill through Parliament is seen as an important step toward ensuring that businesses in both countries can begin benefiting from the agreement without unnecessary delays.

The CEPA with the UAE is a significant development for New Zealand's trade strategy, expanding its footprint in the Gulf region and offering new opportunities in a rapidly growing market. The UAE, a key financial and trade hub in the Middle East, is expected to become an increasingly important partner for New Zealand's exporters, and the trade agreement is expected to strengthen the broader economic relationship between the two nations.

Looking ahead, McClay reaffirmed the government's commitment to supporting New Zealand businesses in navigating global trade challenges. With the implementation of the NZ-UAE CEPA, the government hopes to set a precedent for similar agreements with other countries, ensuring that New Zealand remains competitive and resilient in the global marketplace.

As the legislative process continues, businesses in both New Zealand and the UAE are optimistic about the benefits this agreement will bring, not only in terms of reduced tariffs but also through the creation of a more predictable and transparent trade framework. The agreement reflects the growing collaboration between the two nations and underscores the importance of trade as a driver of economic prosperity.