New Zealand Prime Minister Christopher Luxon will be in the UAE tomorrow for the signing of the Comprehensive Economic Partnership Agreement (CEPA). The deal, which took just a year to negotiate, is expected to fortify economic cooperation between the two countries.
“Our two governments cooperate across a range of shared interests, from expanding renewable energy generation in the Pacific to our desire to de-escalate conflict in the Middle East.
“This is a country where 4,000 Kiwis are living and working, and a key transport and logistics hub with more than half a million people coming to New Zealand through the UAE each year,” says Luxon, noting the CEPA’s potential to elevate New Zealand’s exports, particularly to the UAE, the nation’s biggest Middle Eastern market.
A Decade in the Making
The CEPA agreement is the latest chapter in a relationship that began in 2006, when New Zealand first initiated trade discussions with the Gulf Cooperation Council (GCC). Today, trade with the UAE is valued at NZ$1.3 billion, fuelled by strong exports of dairy, meat, and fruit. “The UAE is a trusted partner for New Zealand,” Prime Minister Luxon remarked.
Key Features of CEPA
The new trade agreement between New Zealand and the UAE will eliminate tariffs on over 98% of New Zealand’s exports to the region, with the potential to double trade value within the next decade.
The deal also goes beyond tariffs, encouraging foreign investment in key areas like infrastructure and fostering partnerships in renewable energy. New Zealand is strengthening its position as a global trading hub, enhancing economic resilience and diversifying its trade ties with the deal.
Mutual Commitments
The UAE continues to prioritise global trade expansion, with Rashed Matar Alqemzi, UAE Ambassador to New Zealand, noting the country’s strong commitment to international law and its humanitarian efforts in regions like Sudan. The CEPA with New Zealand is part of a broader economic strategy to diversify trade partnerships, following similar agreements with Australia and Indonesia. The UAE is currently strengthening its ties with Asia-Pacific nations to enhance its position amid shifting regional trade dynamics.
Criticism and Concerns
While groups such as Export New Zealand and the New Zealand International Business Forum have expressed strong support for the CEPA, the agreement has also faced opposition. The New Zealand Council of Trade Unions, in a lengthy submission, warned against the deal, pointing to “significant concerns about the UAE’s labour rights and standards” and the treatment of migrant workers.
Charting the Path Ahead
The CEPA establishes a strong framework for deeper cooperation in key sectors, including renewable energy and sustainable development. The agreement also opens avenues for New Zealand to engage in peace-building initiatives across the Middle East, combining its trade goals with a focus on stability and innovation despite ongoing challenges.