The UAE and South Korea have formally enacted their Comprehensive Economic Partnership Agreement, the first of its kind Seoul has signed with a country in the Middle East and North Africa.
The agreement is aimed at boosting trade and investment relations by creating opportunities in several key sectors, enhancing private sector co-operation and significantly reducing tariffs on more than 90 per cent of traded goods and services, the Ministry of Foreign Trade said on Thursday.
The agreement with South Korea is the Emirates’ 17th Cepa to take effect, said Dr Thani Al Zeyoudi, Minister of Foreign Trade. It marks an “important milestone” in the UAE’s economic ties with Asia, the continent with the biggest export market and home to billions of consumers, he added.
“The agreement will support increased trade flows, create new market opportunities for exporters and strengthen investment and co-operation across priority sectors, including advanced technology, manufacturing and logistics,” Dr Al Zeyoudi said.
“This agreement will also enhance supply-chain resilience and reinforce the UAE’s position as a global trade hub.”
The UAE launched the Cepa programme in 2021 to reduce tariffs and remove trade bottlenecks with selected countries through simplified customs procedures and rules.
The Emirates has Cepas in place with India, Turkey, Jordan, Serbia and Vietnam, among others. It is also in talks with countries including Nigeria and Rwanda.
The agreements are helping the UAE to increase trade with partners across the globe, which last year helped the country’s non-oil foreign trade to surge by 26 per cent year on year, passing $1 trillion for the first time.
The Emirates is South Korea’s largest trading partner in the Gulf, with a combined $10 billion invested in each other’s markets, according to official data.
Several companies from South Korea – a country known for major industries such technology and automotive – already operate in the UAE.
In November, President Sheikh Mohamed welcomed South Korea‘s President Lee Jae Myung to Abu Dhabi, where the two leaders discussed ways to enhance co-operation.