UAE, EAEU finalise negotiations on Economic Partnership Agreement

The United Arab Emirates and the Eurasian Economic Union (EAEU) have successfully concluded negotiations aimed at reaching a comprehensive economic partnership agreement to enhance bilateral trade in goods between the UAE and the five members of the EAEU bloc, which comprise Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia

Dr Thani Bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, and Andrey Slepnev, Member of the Board (Minister) in charge of Trade of the Eurasian Economic Commission, have confirmed the conclusion of negotiations toward an Economic Partnership Agreement (EPA) between the UAE and the EAEU.

Al Zeyoudi stressed that the conclusion of EPA negotiations reflects the UAE’s firm belief in constructive international cooperation and promotion of open, rules-based trade as a cornerstone of global economic growth and stability.

He said, "The UAE and the Eurasian Economic Union have developed a prosperous, productive relationship that is based on a shared commitment to long-term growth and economic diversification. The conclusion of negotiations on an Economic Partnership Agreement between us will deepen these ties and enable us to build on our many synergies.”

"With a combined population of some 200 million people and a GDP approaching $5 trillion, the EAEU offers a rich seam of opportunity for our private sector, while the UAE and its growing network of global trade partners offers EAEU exporters streamlined access to the competitive, high-growth markets in the Middle East, Africa, Asia and South America. This agreement deepens vital links between the Gulf and Eurasia region, and we look forward to seeing the tangible benefits our deeper ties unfold,” Al Zeyoudi added.

Andrey Slepnev confirmed that the EPA will not only deepen trade relations by improving market access for goods and removing unnecessary barriers to trade, but also provide new opportunities for economic and technological cooperation between countries.

Slepnev said, "The EAEU actively forms a network of economic partnerships with friendly countries. The Economic Partnership Agreement with the United Arab Emirates is a significant milestone, given the UAE’s role as a global hub in the region. The EPA will provide additional boost for mutual trade, which is already showing unprecedented growth, and create systemic basis for cooperative ties.”

Following several rounds of discussions, the EPA reflects deepening ties between the UAE and EAEU. In the first half of 2024, the UAE shared non-oil trade worth $13.7 billion with the bloc, representing a climb of 29.6% on the same period in 2023.

The deal aims to boost these figures through reducing or removing tariffs, eliminating technical barriers to trade, expanding market access, and aligning customs procedures. The EPA will also seek to harmonise digital trade and e-commerce in addition to creating new platforms SME collaboration.

The agreement reinforces the centrality of foreign trade to the UAE’s economic agenda. The Comprehensive Economic Partnership Agreement program now boasts six deals in force with a further nine signed and awaiting implementation.

The UAE’s expanding network of trade deals resulted in record non-oil trade of Dhs1.4 trillion in the first six months of 2024, an 11.2% increase compared to the same period in 2023.

In August, Dr Thani bin Ahmed Al Zeyoudi affirmed that the UAE has placed foreign trade at the centre of its economic agenda, recognising its pivotal role in driving industrial output, enhancing the global competitiveness of its products and services, as well as catalysing innovation.

He said, “As a direct result of this conviction, and guided by our leadership’s forward-thinking vision and commitment to global collaboration, our non-oil foreign trade continues to set new milestones.”

Dr Al Zeyoudi noted that the value of the UAE's non-oil trade has remained on a robust growth trajectory, reaching an all-time high of Dhs1.395 trillion in the first half of 2024 – the sixth consecutive half-year period of foreign trade growth.

This new milestone marks an 11.2 per cent increase in foreign trade compared to H1 in 2023, and underscores the success of the UAE’s economic diversification strategies, he said, adding that this is best embodied by the increase of the UAE's non-oil exports, which grew 25 percent compared to H1 2023 to reach Dhs256.4 billion.

Dr Al Zeyoudi emphasised that key sectors, including gold, silver, jewellery, oils, perfumes, aluminium, copper wires, and iron products, have led this impressive surge in non-oil exports, demonstrating the country's enhanced global competitiveness. “Our re-export operations also increased, highlighting our status as a global trade hub and reflecting international confidence in the UAE as a reliable trade partner and facilitator.”

“Moreover, our performance defies the global trend of slowing trade growth, which averaged just 1.5 per cent in the first half of this year. This achievement shows the UAE economy’s resilience, which is the result of our steadfast commitment to building strong, productive public-private partnerships as well as fostering collaborative growth with emerging global economies," he added.

Importantly, it’s clear that our Comprehensive Economic Partnership Agreement (CEPA) programme is playing a central role in achieving these record results, Dr Al Zeyoudi stated. He stressed that bilateral trade with CEPA partners India and Türkiye grew 15 and 9.8 percent respectively, and, together, now account for 11.7 percent of the UAE's total foreign trade.

“As we continue to expand and finalise more CEPA deals, we anticipate further growth, steering us toward our ambitious target of Dhs4 trillion in non-oil foreign trade by 2031.” he further said.

“As we look to the future, we will ensure that the UAE continues to leverage the power of trade to drive sustainable, long-term economic growth and prosperity for our nation," Dr Al Zeyoudi concluded.

WAM