UAE and Chile sign landmark deal to boost trade and investment

The UAE and Chile have signed a Comprehensive Economic Partnership Agreement (CEPA) in Abu Dhabi to enhance economic ties. The agreement aims to reduce or eliminate customs duties on 99.5 per cent of UAE imports from Chile, open market access for services exports, and facilitate investment.

“Chile offers a range of exciting opportunities for our private sector, particularly in key areas such as manufacturing, mining, financial services, renewable energy, tourism and agriculture,” explained the UAE’s Minister of State for Foreign Trade, Dr Thani Bin Ahmed Al-Zeyoudi.

The CEPA is expected to boost non-oil bilateral trade to $750 million by 2030, up from $306m in 2023, and by 2030 increase UAE exports by $247m. Al-Zeyoudi highlighted the agreement’s potential to shape the future economy, emphasising sustainable growth and eco-tourism.

سعدت بلقاء فخامة غابرييل بوريك فونت اليوم في أبوظبي. بحثنا سبل تعزيز العلاقات الثنائية في المجالات ذات الأولوية، وشهدنا توقيع اتفاقية الشراكة الاقتصادية الشاملة بين دولة الإمارات وتشيلي، والتي تعد نقلة نوعية في مسار علاقاتهما ومن شأنها بناء جسور التعاون الاقتصادي وتعزيز الرخاء… pic.twitter.com/tRJY0HLUdx

— محمد بن زايد (@MohamedBinZayed) July 29, 2024

The landmark agreement was signed during Chilean President Gabriel Boric Font’s official visit to the Gulf state. Yesterday, an official reception was held at Qasr Al-Watan in Abu Dhabi, where he was received by UAE President Sheikh Mohamed Bin Zayed Al-Nahyan.

Speaking about the trade deal, Chilean Foreign Minister Alberto van Klaveren noted: “This agreement is very relevant for Chile. It is Chile’s first trade agreement with a country in the Middle East and the Gulf in particular.”

Chile has the fourth-largest economy in South America and is a leading producer of copper and lithium. It sees the CEPA as a significant step in broadening market access and fostering future investment agreements.

This is the UAE’s second CEPA with a South American country this year, following an agreement with Colombia signed in April.

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