Today, negotiations concerning a bilateral free trade agreement with the United Arab Emirates have been concluded successfully following a nine month process. The Comprehensive Economic Partnership Agreement (CEPA) is the first of its kind made with Australia’s largest Middle East trade and investment partner and will allow an estimated 99% of Australian products to enter the UAE tariff free. In turn, this will result in estimated tariff savings of $135 million in the first year and $160 million per year once the agreement is fully implemented.
“Australian Grape & Wine commends the Australian Government for achieving this milestone and extends its thanks to Ministers Farrell, Watt, and Collins, along with their departments, for their dedicated efforts in securing this agreement,” said Lee McLean, Chief Executive of Australian Grape & Wine.
“The Australia-UAE CEPA offers a platform for ongoing dialogue and cooperation on technical matters to further strengthen trade relations between our countries.”
In the 12 months to 30 June 2024, Australian wine exports to the UAE “increased by 19% in volume to 3 million litres and 15% in value to $18 million,” according to Wine Australia’s Export Report June 2024. The report also revealed that “red wine was the key driver in the growth,” growing 29% by volume and 18% by value. Despite this, the UAE market is still only responsible for consuming 0.5% of Australian wine by volume.
“The UAE is a vital market for Australian wine, and we are excited about the continued growth opportunities this agreement brings,” said McLean.
Don Farrell, Australia’s Minister for Trade and Tourism, added that, “under this trade agreement, Aussie exports are expected to increase by $678 million per year, but this deal means more for Australia than just numbers.
“More trade means more higher-paying jobs, more opportunities for our businesses, greater investment to build things here in Australia, and cheaper bills for Australian households.”
Australia and the United Arab Emirates will now begin working to formalise the legal treaty text in preparation for signing later this year. As it stands, two-way investment between Australia and the UAE totalled $20.6 billion in 2023.
“We look forward to reviewing the full details in due course,” said McLean.
Don Farrell concluded: “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.”
