UAE and New Zealand Sign Historic Trade Agreement to Strengthen Economic Ties and Boost Bilateral Trade

Abu Dhabi, UAE – January 14, 2025: A historic milestone in international trade was reached today as UAE President Sheikh Mohamed bin Zayed Al Nahyan and New Zealand Prime Minister Christopher Luxon witnessed the signing of the Comprehensive Economic Partnership Agreement (CEPA) between the two nations. The ceremony took place at the Abu Dhabi National Exhibition Centre (ADNEC) and saw the signing of the agreement by Thani bin Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade, and Todd McClay, New Zealand Minister for Trade.

This new agreement is set to reduce trade barriers, streamline customs procedures, and foster increased private sector collaboration and investment between the two countries. Sheikh Mohamed bin Zayed highlighted that the agreement marks a significant addition to the UAE’s CEPA program, strengthening its connections with the Asia-Pacific region, one of the world’s most developed and open markets.

The UAE-New Zealand CEPA is built upon the growing economic ties between the two nations, with bilateral non-oil trade having reached USD 642 million in the first nine months of 2024, reflecting an 8% increase compared to the same period in 2023. Sheikh Mohamed emphasized that the CEPA reflects the shared ambition of both countries to create resilient, future-ready economies powered by knowledge, innovation, and talent.

As part of the agreement, New Zealand will provide 100% duty-free access to all imports from the UAE, while the UAE will offer duty-free access to 98.5% of New Zealand products, with this figure set to rise to 99% within three years. This trade deal is expected to increase bilateral trade to USD 5 billion by 2032, tripling the five-year average trade of USD 1.5 billion between the two nations from 2019-2023.

This partnership is particularly significant as it marks New Zealand’s first trade agreement with a Middle Eastern nation, and it stands as one of the UAE’s most expansive CEPAs to date. The agreement covers a wide array of areas, including indigenous trade, sustainable development, women’s economic empowerment, and transparency. In addition to the CEPA, a Bilateral Investment Treaty aimed at promoting and protecting investments was also concluded, ensuring a stronger framework for increasing UAE-New Zealand investment ties across multiple sectors.

The UAE’s CEPA program, launched in September 2021, is a central part of the country’s economic growth strategy, which targets USD 1 trillion in total trade value by 2031 and aims to double the size of its economy to surpass USD 800 billion by 2031. To date, the program has resulted in agreements with nations across the Middle East, Africa, Southeast Asia, South America, and Eastern Europe, broadening access to markets that represent nearly a quarter of the world’s population.

This agreement solidifies the UAE’s commitment to enhancing its economic relations globally, with a particular focus on creating mutually beneficial partnerships that promote innovation, sustainability, and long-term economic growth.