Trade deal secured with the United Arab Emirates
Trade deal secured with the United Arab Emirates
Australian exporters have been provided access to diversify into United Arab Emirates.
On 28 September 2024, the Australian and the United Arab Emirates’s (UAE) trade ministers successfully concluded negotiations on the Australia-United Arab Emirates Comprehensive Economic Partnership Agreement (CEPA). This is Australia's first trade agreement with a Middle Eastern nation, providing Australian exporters access to diversify into the region.
The UAE, which stands as Australia's largest trade and investment partner in the Middle East, recorded $9.9 billion in two-way trade in 2023. Key Australian exports to the UAE include alumina, meat, dairy, seafood, and higher education. The agreement will allow over 99 per cent of Australian products to enter the UAE tariff-free, saving a projected $135 million in the first year, which is expected to rise to $160 million annually once the agreement is fully implemented. Australian farmers and food producers alone are expected to save $50 million per year on tariffs.
The CEPA also promotes two-way investment, particularly in sectors essential to Australia’s energy transition, such as critical minerals. Reduced tariffs on exports will benefit the mining industry, and for Australian households, tariff cuts on UAE-produced furniture, copper wire, glass containers, and plastic are estimated to result in savings of $40 million annually.
The agreement also includes provisions on labour rights, environmental protection, sustainable development, and Australia’s right to regulate. Notably, it is Australia’s first trade agreement with a chapter dedicated to First Nations trade, offering preferential access for First Nations businesses. The legal text is now being prepared for signing later in 2024, with details on tariffs and implementation to follow.
How BDO can help
BDO’s experienced customs, international trade and excise team can provide businesses with support in:
- Reviewing your international supply chain to take advantage of current free trade agreements and customs concessions to reduce customs duty liabilities for imports and exports
- Qualifying goods under the Australia-UAE CEPA to support those goods to obtain preferential customs duty rates when being imported into the UAE, or Australia.
Contact us today to learn more about how we can assist you.