Under the new agreement 99 per cent of Australian products will enter the UAE tariff free
The Australian government has announced negotiations on the Australia-United Arab Emirates Comprehensive Economic Partnership Agreement have concluded.
The agreement is set to provide a gateway for Australian exporters to diversify into the Middle East, a market of around 58m consumers and a combined GDP of A$1.4tn (US$950bn).
Under the new trade agreement over 99 per cent of Australian products will enter the UAE tariff free, resulting in estimated tariff savings of A$135m in the first year, rising to A$160m per year once the agreement is fully implemented.
Australian growers and food producers are estimated to incur tariff savings of A$50m per year for food and agriculture exports.
In 2023, Australia exported almost 40,000 tonnes of vegetables to the UAE, worth A$34m, making the nation the second largest export destination for Australian vegetable produce by value, and largest by volume.
This included 33,000 tonnes of carrots, more than 4,200 tonnes of onions, and nearly 2,000 tonnes of potatoes.
“We are a trading nation, and the Albanese government is delivering on its commitment to open up new opportunities for our exporters, farmers, producers and businesses to diversify their markets,” said minister for trade and tourism, Don Farrell.
“Under this trade agreement, Aussie exports are expected to increase by A$678m per year, but this deal means more for Australia than just numbers.”
According to Farrell, the deal unlocks new business opportunities, creates greater certainty for Australian service providers in the UAE and makes it easier for certain skilled professionals to work temporarily in the UAE.
The trade agreement with the UAE is also Australia’s first trade agreement with a dedicated chapter covering First Nations trade. First Nations businesses seeking to export their goods to the UAE will benefit from preferential market access and rules under the agreement.
Ausveg has welcomed the deal emphasising it will help further secure and develop one of the largest export markets for Australian vegetables.
Ausveg chief executive Michael Coote said the securing of the deal was an important development in the longer-term trading relationship between Australia and the UAE.
“The UAE is a key and valued long-term trading partner for the Australian vegetable industry,” said Coote.
“This deal is an important step that will lock in and underpin the vegetable industry’s ability to trade competitively in a UAE market, where Australian exporters currently enjoy tariff free trade for most fresh vegetables.
The Australian Fresh Produce Alliance (AFPA) has called the deal “a pivotal development for the country’s agricultural sector”.
“The UAE is an emerging market for a range of horticulture exports, and industry looks forward to continuing to expand our trade under the new agreement,” said AFPA chief executive Claire McClelland.
“By removing trade barriers, this agreement helps ensure the long-term viability of our sector while creating jobs and stimulating the local economy.”
Australia and the UAE are now both working to formalise the legal treaty text in preparation for signing later this year.
