UAE Sign Trade Pact with New Zealand

In one of its fastest trade deals with any country, New Zealand has signed its first-class free trade deal and investment treaty with the UAE on Tuesday.

Together with the UAE President His Highness Sheikh Mohammed bin Zayed, New Zealand Prime Minister Christopher Luxon witnessed the signing of the Comprehensive Economic Partnership Agreement (CEPA) and accompanying investment treaty by Trade Minister Todd McClay and his UAE counterpart the Minister of State for Foreign Trade Dr Thani bin Ahmed Al Zeyoudi.

Speaking on the occasion, Luxon said that securing trade deals for New Zealand’s exporters has been a top priority for his government as they aim to double the value of New Zealand’s exports in ten years.

“The CEPA will unlock economic opportunities for Kiwi businesses, secure preferential access for our primary sector exporters, and strengthen supply chains with a key partner in the Gulf region,” Luxon said.

The Prime Minister also said that the CEPA negotiations, which were concluded in just over four months, makes this New Zealand’s fastest-ever free trade agreement negotiation.

“This is our first trade agreement in the Gulf region and is testament to Todd McClay’s hard work here and around the world. This is a significant step towards growing our trade and economic relationship,” Luxon said.

Two-way trade between New Zealand and the UAE is valued at $730 million annually, but that is set to grow when CEPA comes into force.

“Duties on 98.5% of our exports to the UAE will be eliminated immediately on entry into force, rising to 99% within three years and contributing to our ambitious target of doubling exports by value in ten years,” McClay said.

New Zealand’s top exports to the UAE are dairy ($397.85 million), industrial products ($136.18 million), meat ($28.14 million), horticulture ($26.45 million), and tourism ($18.57 million) respectively.

CEPA Hailed

The Dairy Companies Association of New Zealand said the deal would deliver the complete elimination of all dairy tariffs from day one.

Association’s Executive Director Kimberly Crewther said that New Zealand exported approximately $398 million worth of dairy products to the UAE in 2024r, making the Emirates their 10^th largest dairy market.

Eliminating all dairy products provides important certainty to continue growing this trade and the CEPA is a positive step towards a less protectionist international environment for New Zealand dairy products, he said.

“We strongly encourage the government to continue pursuing such high-quality outcomes with other negotiating partners, including upgrading existing trade agreements that have not yet secured dairy tariff elimination,” he added.

The honey sector is also happy with the deal as it removes a 5% tariff on New Zealand honey. Apiculture New Zealand chief executive Karin Kos said that honey exports to the UAE were worth $2.98 million in the year to June and demand was growing.

“This will make doing business easier for exporters at a time when it is much needed by the New Zealand honey sector and its exporters will look forward to the benefits of closer trade ties including more opportunities to present the benefits of New Zealand’s unique honey offerings,” Kos added.

Federated Farmers President Wayne Langford said that the deal would take millions of dollars that would have been charged in tariffs and pump them directly into rural communities and said that it was great to see the government delivering on its commitment to open up new markets, reduce tariffs, and give their exporters options.

The Middle East presents an exciting opportunity for Kiwi exporters as a wealthy and growing market with huge potential and the deal is a boost for farmers who had been doing it pretty tough lately with high costs and squeezed profit margins, he said.