The comprehensive economic partnership agreement between the United Arab Emirates and New Zealand has officially come into effect, marking a significant advancement in the trade and investment relations between the two nations. This agreement, signed in January 2025, establishes a framework for enhancing economic collaboration across various sectors.
It is anticipated that the agreement will boost non-oil bilateral trade to over $5 billion annually by 2032, in comparison to an average of $1.5 billion per year from 2019 to 2023.
The deal will aim to eliminate or reduce tariffs, streamline customs procedures, and strengthen private sector cooperation. It is notable for being New Zealand’s first such agreement with a country in the Middle East, representing a strategic step in enhancing its economic ties with the region.
Significant Milestone
Dr. Thani bin Ahmed Al Zeyoudi, Minister of Foreign Trade, stated, “The implementation of the comprehensive economic partnership agreement between the UAE and New Zealand represents a vital milestone in the relationship between our two friendly nations. This agreement fosters innovation and sustainable growth in line with our mutual interests, focusing not only on bolstering trade relations but also opening new avenues for investment and private sector collaboration in critical areas like food production, education, renewable energy, and advanced technologies.”
Sustainable Growth
Todd McClay, New Zealand’s Minister of Trade and Investment, remarked, “This agreement symbolizes a turning point in New Zealand’s trading history. It offers opportunities for our producers and investors while reflecting our shared commitment to sustainable growth. We look forward to deepening our partnership with the UAE in areas that are vital to both our populations, ranging from food and energy to innovation and education.”
Under the agreement, New Zealand will grant a 100% tariff exemption on imports from the UAE, while the UAE will provide a 98.5% exemption on New Zealand products. This comprehensive agreement reflects both countries’ commitment to enhancing their economic relationship and maximizing mutual benefits.
The Comprehensive Economic Partnership Agreements program is a key element of the UAE’s foreign trade strategy, aiming to increase total trade value to AED 4 trillion by 2031. Since its launch in September 2021, the program has successfully established agreements with 28 countries, thus enhancing trade relations and opening markets for UAE companies to approximately a quarter of the global population.