Thu Sep 26 12:52:40 UTC 2024: ## New Zealand and UAE Seal Record-Breaking Trade Deal, Opening New Chapter in Relations
**Wellington, New Zealand:** New Zealand and the United Arab Emirates (UAE) have concluded negotiations on a Comprehensive Economic Partnership Agreement (CEPA), marking a significant milestone in their bilateral relations. This fast-track agreement, finalized in just a year after initial talks began, is touted as one of New Zealand’s fastest trade negotiations ever.
The CEPA is seen as a major breakthrough for New Zealand’s engagement with the Middle East, particularly since negotiations on a wider free trade agreement with the Gulf Cooperation Council (GCC) began in 2006. The deal will be incredibly valuable for New Zealand, as the UAE is already its biggest export market in the region, with over NZ$1.12 billion worth of goods and services exported in the year to June 2024.
The agreement is expected to boost New Zealand’s exports to the UAE, particularly in high-quality food products like dairy, meat, and fruit. The UAE’s strong demand for food security, fueled by climate change and population growth, makes New Zealand’s agricultural exports highly attractive.
The CEPA also has strategic implications. As geopolitical competition in the Indo-Pacific intensifies, the UAE sees the agreement with New Zealand as a valuable gateway alongside its existing CEPA with Australia. This strengthens its position in the region, especially in light of its increasing ties with ASEAN members like Cambodia and Indonesia.
However, the deal has also sparked debate. While trade groups like Export New Zealand and the New Zealand International Business Forum are supportive, the New Zealand Council of Trade Unions has expressed concerns about the UAE’s labor rights and standards, specifically regarding migrant workers.
Despite these concerns, the New Zealand government views the CEPA as a positive step forward, paving the way for increased investment from UAE’s sovereign wealth funds. Further, the agreement has not hindered New Zealand’s relations with other Gulf states.
The formal signing of the CEPA is expected to take place during a reciprocal visit by New Zealand ministers to the UAE, potentially including Prime Minister Christopher Luxon. If realized, this would be the first visit by a New Zealand prime minister to the Gulf since 2015.
The deal signals a significant shift in New Zealand’s engagement with the UAE, opening new avenues for trade, investment, and regional cooperation. It remains to be seen how the agreement will be implemented and how it will shape New Zealand’s role in the increasingly complex geopolitics of the Asia-Pacific.
First Piper 