Canberra
Australia and the United Arab Emirates (UAE) have finalized a free trade agreement. On Tuesday, Don Farrell, Australia’s Minister for Trade and Tourism, announced the conclusion of negotiations for the Australia-UAE Comprehensive Economic Partnership Agreement.
The agreement will remove tariffs on more than 99 percent of Australian products entering the UAE. This deal marks Australia’s first trade agreement with a Middle Eastern country. Farrell noted that the UAE is Australia’s largest trade and investment partner in the region and a key strategic ally.
Under the agreement, Australian exports to the UAE are expected to rise by 678 million Australian dollars (US$457.3 million) annually. The deal will also facilitate investment from UAE sovereign wealth funds into Australia’s critical minerals sector. Farrell emphasized that the UAE’s substantial sovereign wealth funds would help Australia achieve its goal of becoming a leader in renewable energy.
In 2023, two-way trade between Australia and the UAE amounted to 9.9 billion Australian dollars, with two-way investment reaching 20.6 billion Australian dollars. Both nations are now working to formalize the legal treaty text, with the agreement expected to be signed later in 2024.
