The resource sector Down Under eyes UAE investment and cheaper exports.
Australia and the United Arab Emirates (UAE) have concluded negotiations on a Comprehensive Economic Partnership Agreement (CEPA) to boost Australian agricultural and resource exports and facilitate UAE investment into the industry Down Under. The trade deal removes tariffs on roughly 99 percent of Australian products, meaning Australian exporters will save over $90 million (AUS$135 million) in tariffs in the first year alone, according to the Australian Minister for Trade and Tourism, Don Farrell. The UAE, on the other hand, will benefit from broader access to the Australian industry.
Clean Energy and Mining Sectors Set to Benefit From Investments
The Australian renewables and resource sectors especially hope for investments through the UAE’s sovereign wealth funds, which Farrell highlighted as “one of the largest in the world.” To facilitate UAE investment, a Council on Investment will be established to prioritize projects to support Australia’s clean energy transition and Future Made in Australia agenda. In addition, five Memoranda of Understanding in key sectors will reinforce the trade agreement: clean energy, data centers and artificial intelligence, food and agriculture, minerals, and infrastructure.
The UAE is Australia’s most important trade partner in the Middle East, with two-way trade worth over $6.7 billion last year. Talks to reach a trade deal began in 2023 and intensified in February of this year (we reported). Following the conclusion of negotiations, the CEPA will move through the legislative process and is expected to enter force in mid-2025, according to the Australian Department of Foreign Affairs and Trade.
While Australia successfully reached a free trade agreement with the UAE, similar negotiations with the European Union failed to reach a conclusion last year (we reported). However, the two partners signed a deal on critical minerals earlier this year. Just this week, India and the UAE have also signed an agreement, aiming to work closer together on critical mineral supply chains.
Photo: southtownboy via Canva
