Australia and the United Arab Emirates (UAE) have finalised a historic Free Trade Agreement (FTA), enhancing the economic ties between the two nations. This agreement represents a significant milestone, fostering growth and collaboration across various sectors.
Mohamed Hage OAM, AACCI’s Chairman, stated, “This agreement is a testament to our shared commitment to economic growth and collaboration. It opens doors for Australian businesses and highlights the importance of Australia’s partnerships with countries in the MENA region.”
Under the FTA, over 99% of tariffs on Australian products entering the UAE will be eliminated. Key exports such as frozen beef, sheep meat, canola seeds, dried legumes, and dairy products will see immediate benefits, paving the way for increased trade volumes.[1]
The economic impact of this agreement is substantial, with Australian exports projected to rise by approximately $678 million annually.[2] Initial tariff savings are estimated at $135 million in the first year, increasing to $160 million as the agreement is fully implemented.[3]
Minister for Trade and Tourism, Don Farrell, highlighted the broader benefits, “More trade means more higher-paying jobs, more opportunities for our businesses, greater investment to build things here in Australia, and cheaper bills for Australian households.”
As Australia’s largest trade and investment partner in the Middle East, the UAE plays a crucial role in Australian economic interests. Two-way trade between the nations exceeds $9.9 billion, with two-way investment valued at $20.6 billion as of 2023.[4]
Australian farmers and food producers stand to gain significantly from this agreement. It is anticipated that the FTA will yield around $50 million in annual tariff savings for the food and agriculture sector, enhancing their competitiveness in the UAE market.[5]
Mohamed Hage OAM emphasised, “The elimination of tariffs will not only strengthen our agricultural sector but also position Australia as a leading trade partner in the Middle East. This FTA is a critical step toward a more resilient and diversified economy.”
Moreover, the mining industry is set to benefit, particularly in the export of alumina. This development highlights the diverse opportunities that the FTA creates for various Australian industries.
Notably, the agreement includes a dedicated chapter on First Nations trade. This chapter aims to provide preferential market access and establish rules that support First Nations businesses, promoting inclusivity and diversity in trade.
The FTA is also expected to unlock new business opportunities, offering greater certainty for Australian service providers operating in the UAE. Additionally, it will simplify the process for skilled professionals seeking temporary work in the UAE, further strengthening bilateral relations.
The Australian government is committed to maximising the benefits of this agreement, supporting local businesses, and fostering economic growth. This landmark FTA not only enhances trade but also deepens the strategic partnership between Australia and the UAE.
[1] Australia-UAE CEPA – Key Benefits for Australia | Australian Government Department of Foreign Affairs and Trade (dfat.gov.au)
[2] Australia-UAE CEPA – Key Benefits for Australia | Australian Government Department of Foreign Affairs and Trade (dfat.gov.au)
[3] Trade deal secured with the United Arab Emirates | Minister for Trade and Tourism (trademinister.gov.au)
[4] Trade time series data | Australian Government Department of Foreign Affairs and Trade (dfat.gov.au)
[5] Trade deal secured with the United Arab Emirates | Minister for Trade and Tourism (trademinister.gov.au)
