2023-06-12 10:45:25
Monday, June 12, 2023 – 2:41 PM
Comprehensive economic partnership agreements concluded by the state are designed to stimulate and support the private sector.
The Comprehensive Economic Partnership Agreement with Turkey will enter into force within two months and Cambodia before the last quarter of this year.
ABU DHABI, 12th June, 2020 (WAM) — His Excellency Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, affirmed that the UAE continues to expand its network of trade partners around the world by concluding comprehensive economic partnership agreements, expecting that more agreements will be concluded before the end of the current year 2023.
In an interview with the Emirates News Agency, WAM, His Excellency said that the comprehensive economic partnership agreement talks are witnessing remarkable progress with many countries of strategic importance regionally and globally on the map of international trade, including Chile, Costa Rica, the Eurasian Union, Thailand and Ukraine.
His Excellency Thani Al-Zeyoudi added that the Emirati-Turkish Comprehensive Economic Partnership Agreement has been ratified by the governments of the two countries so that it will enter into force within two months, just as the talks on the Comprehensive Economic Partnership Agreement with Vietnam were launched a few days ago.
On the signing of the Comprehensive Economic Partnership Agreement with the Kingdom of Cambodia .. His Excellency Thani Al-Zeyoudi said that this agreement, in addition to the other agreements signed, will contribute to achieving the trade and investment goals of the state, adding that stimulating foreign trade is a major engine for economic growth, and achieving the state’s goals of increasing foreign trade to 4 trillion dirhams by 2031 and increasing the value of UAE non-oil exports to 800 billion dirhams by 2031.
His Excellency indicated that the agreement with Cambodia is entering the stage of completing the rest of the usual technical and legal procedures in both countries in preparation for its ratification. The agreement will enter into force within 60 days following its ratification by the governments of the two countries. We expect the agreement to enter into force before the last quarter of this year.
He added that the agreement contributes to achieving a number of strategic goals, including “removing or reducing customs tariffs, removing unnecessary barriers to trade, opening access to markets for service exports, establishing an appropriate mechanism for dispute settlement, and developing a framework for digital trade.”
His Excellency said that it is estimated that this agreement will push non-oil intra-trade to more than one billion US dollars annually within 5 years following its entry into force, and we also expect that this will push forward re-exports, which the UAE prioritizes as an engine for GDP growth. gross domestic.
His Excellency added that the agreement with Cambodia would enhance trade routes between East and West and enhance the role of the UAE as a major global center for supply chains and a linking point between Europe, Asia and Africa. UAE goods according to the number of customs tariff items exempted from customs duties since the first day the agreement entered into force, covering more than 81% of the goods and commodities that the UAE exports to the world.
He pointed out that the agreement provides the UAE with access to a wide range of service sectors in the Cambodian market, as it covers most of the main service sectors and sub-sectors.
Regarding the industries and sectors that will benefit in particular from this agreement, Al-Zeyoudi said, “The two countries worked to reach a comprehensive and balanced economic partnership agreement that would be beneficial for all priority sectors in the two countries.” Unparalleled textiles and foodstuffs to reach Africa, Europe and the Middle East and include “grains, fruits, meat, processed foods and clothing”.
He added that UAE exports will witness an increase in a group of commodities, including “machines, paints, dyes, varnishes, adhesives, lubricants, ceramics, tiles, bathroom accessories, cars, trucks, other vehicles and spare parts.”
With regard to investment flows, Al-Zeyoudi said, “We see some particularly promising areas that include” logistics and infrastructure services, as the agreement will contribute to accelerating the development of roads, ports, aviation projects, and all areas that have potential for significant growth, travel, tourism and renewable energy, which Cambodia has a good track record, with more than 50% of its needs coming from clean energy sources – but more infrastructure is now needed to meet demand.”
Regarding the benefit of small and medium-sized companies from the agreement, His Excellency Dr. Thani Al-Zeyoudi said that all the comprehensive economic partnership agreements concluded by the state, including the agreement with Cambodia, were designed to stimulate and support the private sector. The agreement will ease many of the trade restrictions currently facing SMEs’ exports in both directions.
His Excellency explained that the agreement creates a platform for small and medium-sized companies to cooperate and explore ways to reach global markets. These include cooperation between centers dedicated to small and medium enterprises, incubators and accelerators, export assistance centers, small and medium-sized enterprises owned by youth and women, and start-ups. In addition to establishing committees for small and medium enterprises to provide small and medium enterprises with the necessary tools to take advantage of the opportunities available in the SEPA exam. As well as promoting the exchange of information regarding all aspects related to trade, including: laws, regulations, procedures, business registration and licensing.
Regarding the importance of this region of the continent of Asia to the UAE, His Excellency said, “We do not focus on a specific region, as the UAE is keen to explore any partnership, anywhere in the world, that can help promote the growth of the national economy.”
He added that the countries of the Association of Southeast Asian Nations (ASEAN), as one of the fastest growing regions in the world, are very important to the UAE. According to the Asian Development Bank, Southeast Asian economies grew by 5.5 percent in 2022 – exceeding the global average growth in 2023, and the growth rate of ASEAN countries is expected to remain steady around 5 percent in 2023 as trade rebounds with China, once more growing above the expected global average of 2.7 per cent.
On the current conditions of the global economy and how comprehensive economic partnership agreements compensate for this, His Excellency said, “There are some headwinds blowing on the global economy, such as: inflation, slowing growth, and geopolitical issues, but we are actually optimistic regarding the year 2023.”
He added, “We see the UAE and the wider GCC countries as a center for global economic growth, as they are characterized by -” strong internal investment, increased trade volume, more exports – both goods and services, and strong tourism. “We also see emerging new partnerships and business blocs, not particularly in Asia, which will protect supply chains and create new corridors of opportunity.
He pointed out that the design of the comprehensive economic partnership agreements agenda aims to accelerate the utilization of available opportunities, as open and multilateral trade has consistently proven to be a catalyst for growth, opening new markets and investments. Multilateral trade agreements also help relieve pressure on supply chains as well as mitigate inflation. Therefore, we see Cambodia – as we see all of our CEP partners – as a dynamic, fast-growing economy with a long-term upward trajectory.”
With regard to foreign direct investment, His Excellency Dr. Thani Al-Zeyoudi said that there are promising opportunities for expansion in promising sectors such as infrastructure and logistics, tourism and hospitality, renewable energy, agriculture, food processing, etc. The Comprehensive Economic Partnership Agreement lays the foundations for a new partnership that creates new opportunities and drives investment in priority sectors and accelerate global economic recovery.
He said that the agreement with Cambodia provides the UAE with an important bridge in the heart of the fast-growing Asian economy, and thus opens the door for the access of major Cambodian exports such as agricultural products and textiles to the market.
Abdel Nasser Moneim / Ahmed Al-Nuaimi
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