ABU DHABI: His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the UAE, and His Excellency Gabriel Boric Font, President of the Republic of Chile, today witnessed the signing of the Comprehensive Economic Partnership Agreement (CEPA) between the UAE and Chile, during the Chilean President’s official visit to the UAE.
The agreement aims to stimulate bilateral non-oil trade between the two countries by eliminating or reducing tariffs, removing trade barriers and streamlining customs procedures. It also seeks to establish new avenues for investment flows and cooperation while providing a platform for the private sectors of the two countries to build partnerships.
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The agreement was signed by the UAE’s Minister of State for Foreign Trade, Dr Thani bin Ahmed Al Zeyoudi, and Chile’s Foreign Minister Alberto Van Claveren, at a ceremony held at Qasr Al Watan in Abu Dhabi.
Sheikh Mohammed assured that the UAE will remain steadfast in its commitment to building development partnerships around the world to serve mutual benefit and provide opportunities for future generations. This stems from the UAE’s firm belief in the importance of strengthening cooperation among nations to ensure a better future for all, characterized by peace, stability and prosperity.
He said the UAE is keen to expand its network of trade and investment partners around the world through the CEPA programme, which aims to foster long-term economic diversification and sustainable growth.
Mutual Growth
He noted that the CEPA between the UAE and Chile will support mutual economic growth by providing growth opportunities for the business and private sectors of both countries. Furthermore, the agreement establishes an important trade and investment corridor with South America, a country with promising economic potential.
President Borik Font welcomed the signing of the CEPA between the UAE and Chile, describing it as a major milestone in bilateral relations, noting that the agreement will boost trade prospects and diversify sources of investment, including in the sustainability sector.
Bolick also stressed that since its establishment in 1978, relations between the UAE and Chile have demonstrated the importance of international cooperation.
Non-oil trade between the UAE and Chile reached $306 million in 2023. The two countries aim to triple this figure by the end of 2030 by expanding cooperation across priority sectors.
The CEPA between the UAE and Chile is the UAE’s second agreement with a South American country, following a similar pact with Colombia in April last year. The UAE’s Comprehensive Economic Partnership Agreement program, launched in September 2021, is a key element of the country’s growth and diversification strategy.
Non-oil trade
Foreign trade remains a key part of the UAE’s economic growth plans, with non-oil trade reaching a record high of $701 billion in 2023, up 12.6 percent from 2022 and recording 34.7 percent growth compared to 2021.
During their visit, the UAE and Chilean presidents also oversaw the announcement of several memorandums of understanding aimed at strengthening cooperation between the two countries. These agreements cover a range of areas, including food security and agri-food investments, investment, information technology, cooperation in peaceful space research and activities, and expressions of intent in the mining sector.
Earlier, an official welcoming ceremony for the Chilean President took place at Qasr Al Watan in Abu Dhabi. Upon the arrival of President Boric’s motorcade, Sheikh Mohammed escorted the President to the stage of honor, where the national anthems of the UAE and the Republic of Chile were played. A guard of honour was formed to welcome the Chilean President, and a 21-gun salute was fired in his honor.
What is CEPA?
To achieve its economic ambitions, the UAE has strengthened its international relations with countries around the world to position itself as a global trade and logistics hub, and the signing of the Comprehensive Economic Partnership Agreement (CEPA) is key to achieving this goal.