UAE and Chile Ink Landmark CEPA to Boost Economic Ties

The UAE and Chile have signed a Comprehensive Economic Partnership Agreement (CEPA), set to significantly enhance bilateral trade and investment. The pact aims to increase non-oil trade between the two nations to $750 million by 2030, and open new avenues for economic collaboration.

The United Arab Emirates and the Republic of Chile have signed a groundbreaking Comprehensive Economic Partnership Agreement (CEPA) in Abu Dhabi, marking a new chapter in economic collaboration between the two nations. The signing ceremony was held during an official visit by Chilean President Gabriel Boric, who met with UAE President His Highness Sheikh Mohamed bin Zayed Al Nahyan to discuss advancing cooperation across various sectors.

Dr. Thani bin Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade, and Chile's Minister of Foreign Affairs, Alberto van Klaveren, signed the agreement. The CEPA aims to eliminate or reduce customs duties on 99.5% of UAE's imports from Chile, opening new market access for service exports and facilitating investments and joint ventures. The pact is expected to more than double non-oil bilateral trade to $750 million by 2030, compared to $306 million in 2023. Additionally, UAE exports are projected to rise by $247 million by 2030.

UAE's Foreign Trade Minister, Dr. Thani bin Ahmed Al Zeyoudi, hailed the agreement as a milestone for UAE's foreign trade ambitions, emphasizing the benefits for sectors such as manufacturing, mining, and renewable energy. Chile's Foreign Minister, Alberto van Klaveren, noted the agreement's significance as Chile's first Trade Agreement with a Middle Eastern country, setting the stage for future investment negotiations. This CEPA is the UAE's second deal with a South American nation this year, following an agreement with Colombia in April. Foreign trade is pivotal for the UAE's economy, reaching a record $701 billion in non-oil trade in goods in 2023.