Ani | Updated: 29 July 2024 23:10 IST
Dubai [UAE]Abu Dhabi, July 29 (ANI/WAM): The United Arab Emirates and the Republic of Chile today signed the Comprehensive Economic Partnership Agreement (CEPA) in Abu Dhabi, paving the way for deeper economic cooperation between the two countries.
The signing took place coinciding with an official visit to the UAE by Chilean President Gabriel Boric, who was welcomed by President His Highness Sheikh Mohamed bin Zayed Al Nahyan and discussed strengthening cooperation in various fields.
The agreement was signed by Chilean Foreign Minister Thani bin Ahmed Al Zeyoudi and his Chilean counterpart Alberto Van Claveren at a ceremony in Abu Dhabi.
The agreement, the latest in the UAE’s foreign trade plans, will eliminate or reduce tariffs on as much as 99.5 percent of the UAE’s imports from Chile, open market access for services exports, remove unnecessary barriers to trade, and promote investment and joint ventures, creating a range of new opportunities.
As a result of these measures, the UAE-Chile CEPA is projected to increase bilateral non-oil trade to US$750 million by 2030, more than double the US$306 million in 2023. According to official UAE estimates, the agreement is expected to increase UAE exports by US$247 million by 2030.
Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, hailed the agreement as another important milestone for the UAE. He said: “The UAE-Chile CEPA is a major step forward for our external trade ambitions and strengthens our growing ties with South America. The agreement brings together two countries 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 the private sector, particularly in key sectors such as manufacturing, mining, financial services, renewable energy, tourism and agriculture, and we look forward to further synergies between the business communities of our two countries once the agreement is implemented. Importantly, this CEPA also ensures us partners, from trade technology to ecotourism, who share our belief in the importance of sustainable growth and can work together to shape the economy of tomorrow.”
Meanwhile, Chilean Foreign Minister Alberto Van Claveren said, “This agreement is very significant for Chile. It is our first trade agreement with the Middle East, and specifically with the Gulf countries. We are confident that the extensive liberalization of access to our two markets established in CEPA will have a significant impact on bilateral trade. Furthermore, this agreement will facilitate the negotiation of future investment agreements that will be important for both sides. Overall, CEPA will take our relationship with the UAE to a new level and allow us to have a stronger presence throughout the region.”
Chile is South America’s fourth largest economy with a GDP of over $300 billion. It is also the world’s largest copper producer and the second largest lithium producer, and boasts rich agricultural, fishing and forestry resources. The UAE is already an active investor in Chile, with major investments in fruit production and exports, real estate and shipping.
The UAE-Chile CEPA is the second agreement the UAE has signed with a South American country this year, following the signing of the CEPA with Colombia in April. The CEPA programme was launched in September 2021 as a key pillar of the UAE’s growth and diversification efforts.
Foreign trade remains a cornerstone of the UAE’s economic policy. In 2023, the UAE’s non-oil goods trade will reach a record high of US$701 billion, up 12.6% from 2022 and 34.7% from 2021. (ANI/WAM)