UAE, Ukraine clear CEPA terms to elevate non-oil foreign trade

The United Arab Emirates and Ukraine have finalised the terms of a Comprehensive Economic Partnership Agreement (CEPA) between the two nations, the latest milestone in the UAE’s efforts to elevate the value of non-oil foreign trade to Dhs4 trillion by 2031.

The conclusion of negotiations was confirmed with the signing of a joint statement by Dr Thani Bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, and Yulia Svyrydenko, Ukraine’s First Deputy Prime Minister and Minister of Economy.

Once implemented, the UAE-Ukraine CEPA will remove or reduce tariffs on key product lines, remove unnecessary trade barriers and promote fair market access to exporters from both sides.

Importantly, it will support Ukraine’s recovery and the rebuilding of key industries and infrastructure, while also helping to strengthen supply chains to the MENA region for major exports such as grains, machinery and metals.

Upon the conclusion of negotiations, Al Zeyoudi said, “Ukraine is a bridge to Europe for our exporters and an important ally in our food security imports. Once implemented, the CEPA will offer Ukraine’s industrialists and entrepreneurs a new platform from which they can expand into the growth markets of Asia and Africa through the UAE, while unlocking new investment pathways that can reconstitute sectors such as logistics, manufacturing and IT and rebuild essential infrastructure.”

He added, “The agreement will play an active role in the revitalisation of the Ukrainian economy, and we look forward to the ratification of the deal and the new opportunities it will create for the business communities on both sides.”

Meanwhile, Yulia Svyrydenko said, “The conclusion of CEPA negotiations between Ukraine and the UAE marks a historic milestone in our bilateral relations. I am confident that the Ukrainian and Emirati business communities will fully capitalize on the opportunities presented by the Ukraine-UAE CEPA, thereby unlocking the immense potential in our trade and economic cooperation.”

In 2023, the UAE and Ukraine shared $385.8 million in non-oil trade, with joint FDI stock standing at $360 million by the end of 2022 across sectors such as logistics and infrastructure, travel and tourism and advanced technology.

The conclusion of the negotiations with Ukraine is the latest milestone in efforts to expand the UAE’s network of trading partners across global markets. It adds to the 14 Comprehensive Economic Partnership Agreements that have either already entered into force, been formally signed, or have been successfully negotiated with strategic markets on the international trade map, including Africa, South America, Asia, and Europe, and covering more than a quarter of the world’s population.

Last week, the UAE and the Republic of Chile have successfully concluded negotiations on a Comprehensive Economic Partnership Agreement (CEPA) between the two friendly countries.

Dr Thani Bin Ahmed Al Zeyoudi and Alberto van Klaveren, Minister of Foreign Affairs of Chile, signed a joint statement announcing the successful conclusion of negotiations and reaching out the CEPA final provisions between the two sides.

This agreement marks a significant milestone within the UAE’s CEPA programme, which aims to raise the value of the country’s non-oil foreign trade to Dhs4 trillion by 2031.

The non-oil trade between the UAE and Chile amounted to $305.1 million in 2023, representing a remarkable growth of 23.6 per cent since 2019.

Dr Al Zeyoudi welcomed the successful conclusion of the talks, stressing that the agreement will open up access for UAE companies and exporters to the fast-growing economies of Chile and Latin America.

He commented, “Chile is an ideal partner within the CEPA programme being implemented by the UAE. This partnership will foster sustainable and mutually beneficial growth in trade of goods and services, investment, and economic cooperation.

BRICS Sherpa meeting: Saeed Mubarak Al-Hajeri, Assistant Minister for Economic and Trade Affairs at the Ministry of Foreign Affairs, and the UAE’s Sherpa of BRICS, participated in the second Sherpa meeting of the BRICS group, which was held in Moscow, Russia.

The meeting highlighted ways of reinforcing the integration of new members into the group.

On the sidelines of the meeting, the UAE delegation held several bilateral discussions with representatives from the Russian Federation, India, Ethiopia, China, Brazil, and South Africa. The meetings explored bilateral ties and prospects of cooperation within the BRICS framework.

Notably, the UAE received an invitation to join BRICS in August 2023, and has officially joined the group as a full member at the start of this year, along with the Arab Republic of Egypt, the Islamic Republic of Iran, and the Federal Democratic Republic of Ethiopia. The BRICS group include Brazil, Russia, India, China, and South Africa, as its original members.