UAE-Chile Comprehensive Economic Partnership Agreement aims to reduce customs duties by 99.5 pc

Dubai [UAE], July 29 (ANI/WAM): The United Arab Emirates and the Republic of Chile have signed a Comprehensive Economic Partnership Agreement (CEPA) today in Abu Dhabi, paving the way for deeper economic collaboration between the two countries.

The signing coincided with an official visit to the UAE of Gabriel Boric, President of Chile, during which he was received by President His Highness Sheikh Mohamed bin Zayed Al Nahyan, to discuss strengthening cooperation on a range of fronts.

The agreement was signed by Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, and Alberto van Klaveren, Chile’s Minister of Foreign Affairs, at a ceremony in Abu Dhabi.

The deal, which is the latest in the UAE’s foreign trade programme, will create a range of new opportunities by eliminating or reducing customs duties covering 99.5 percent of the value of the UAE’s imports from Chile, opening market access to services exports, removing unnecessary barriers to trade, and facilitating investment and joint-ventures.

As a result of these measures, the UAE-Chile CEPA is projected to increase non-oil bilateral to US$750 million by 2030, more than doubling the US$306 million shared in 2023. The deal is also set to boost the value of UAE exports by US$247 million by 2030, according to official UAE estimates.

Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, heralded the deal as another important milestone for the UAE. He said, “The UAE-Chile CEPA is a significant step forward for our foreign trade ambitions and consolidates our growing relationship with South America. This deal unites two nations who are both committed to developing open, market-based economies that leverage trade, talent and technology to deliver long-term prosperity.”

He added, “Chile offers a range of exciting opportunities for our private sector, particularly in key sectors such as manufacturing, mining, financial services, renewable energy, tourism and agriculture, and I look forward to our business communities establishing further synergies once the deal is implemented. Importantly, this CEPA also secures a partner that shares our belief in the importance of sustainable growth, from trade technology to eco-tourism, and who we can work with to shape the economy of tomorrow.”

For his part, Alberto van Klaveren, Chile’s Minister of Foreign Affairs, stated, “This Agreement is very relevant for Chile. It is Chile’s first Trade Agreement with a country in the Middle East and the Gulf in particular. We are confident that the broad liberalisation of access to both markets established in the CEPA will substantially impact bilateral trade. Furthermore, this agreement facilitates the negotiation of a future Investment Agreement, important for both parties. As a whole, the CEPA raises our relations with the United Arab Emirates to a new level and will allow us to project ourselves more solidly throughout the region.”

Chile is the fourth-largest economy in South America with a GDP in excess of USD 300 billion. It is also the world’s largest copper producer, the second largest lithium producer and boasts rich agriculture, fishery and forestry resources. The UAE is already an active investor in the country, with key investments in fruit production and export, real estate, and transport.

The UAE-Chile CEPA is the second deal the UAE has signed with a South American nation this year, following the signing of a CEPA with Colombia in April. The CEPA program was launched in September 2021 as a critical pillar of the UAE’s growth and diversification efforts.

Foreign trade remains the cornerstone of the UAE’s economic agenda. In 2023, the UAE’s non-oil trade in goods reached an all-time high of US$701 billion, a 12.6 percent increase on 2022 – and 34.7 percent more than 2021. (