UAE and New Zealand Sign Comprehensive Economic Partnership Agreement to Enhance Trade and Financial Ties

The United Arab Emirates (UAE) and New Zealand have officially implemented the Comprehensive Economic Partnership Agreement (CEPA), a significant move in the UAE's strategy to increase its total trade value and position itself as a global trade hub.

Under the CEPA, the UAE will extend duty-free access to 98.5% of New Zealand's products. This trade agreement is expected to open doors for greater collaboration between the private sectors of the two nations, contributing significantly to the UAE's economic growth.

New Zealand's Trade Minister, Todd McClay, described the CEPA as a "transformative moment" for exporters and investors. The UAE's Minister of Foreign Trade, Dr. Thani bin Ahmed Al Zeyoudi, also hailed the agreement as a "historic milestone".

The CEPA aims to streamline customs procedures between the two nations and eliminate or reduce tariffs. This is projected to significantly increase annual bilateral trade between the UAE and New Zealand, with the projected annual bilateral trade reaching over US$5 billion by 2032.

The CEPA marks New Zealand's first trade agreement with a Middle Eastern country, signifying a significant step in New Zealand's engagement with the region. The UAE, which has already signed agreements with 28 countries, views the CEPA as a cornerstone of its wider trade strategy.

The implementation of the CEPA is expected to contribute to the UAE's goal of becoming a global trade hub. As part of its trade strategy, the UAE aims to double the size of its economy and reach US$1 trillion in total trade value by 2031.

In 2025, the CEPA was officially brought into force by multiple countries, including India, which initiated its first trade agreement with the UAE under this framework. This marked a significant milestone in trade relations between these nations.

The CEPA is not only beneficial for the UAE and New Zealand but also for other countries that are part of this agreement. It is expected to foster a more integrated and interconnected global trade network, making it easier for businesses to operate across borders and facilitating the growth of the global economy.