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H.H. Sheikh Abdullah Bin Zayed Al Nahyan, UAE Deputy Prime Minister and Minister of Foreign Affairs, and Penny Wong, Australian Minister of Foreign Affairs, attended the signing of the UAE and Australia Comprehensive Economic Partnership Agreement (CEPA) by H.E. Dr. Thani Bin Ahmed Al Zeyoudi, UAE Minister of Foreign Trade, and Don Farrell, Australian Minister for Trade and Tourism in Canberra on 6 November 2024.

The CEPA, containing 26 chapters and their annexes, cover a wide range of trade topics designed to boost bilateral trade and enhance economic relations. The CEPA removes or reduces tariffs, lifts barriers to trade and expands market access, as well as strengthens cooperation in areas like green energy, infrastructure, mining, and food systems.

The UAE-Australia CEPA breaks new ground reflecting the shared objectives and interest of the trading Partner containing dedicated chapters that address more deeply matters related to sustainable development, increasing opportunities for SMEs, women’s economic empowerment, indigenous peoples, competition and consumer protection.

Summary of CEPA Coverage:

Comprehensive Market-Access for Goods

The CEPA has liberalised almost 99% of goods tariff lines with a gradual phasing out for a small number of other products. UAE maintains exclusions related to special and prohibited products such as tobacco and alcoholic beverages.

The CEPA adopts modern and flexible rules of origin, which cover goods made in UAE free zones, and allow for bilateral accumulation for originating material.

The CEPA puts in place arrangements to streamline customs procedures that are risk-based, so goods move faster across the border.

Each side maintains the WTO rights and obligations with respect to anti-dumping, countervailing and safeguard measures while enhancing bilateral cooperation and coordination to better preserve the market access for exports under the CEPA.

Each Partner affirms the importance of protecting human, animal and plant health while avoiding unnecessary barriers to trade by basing sanitary and phytosanitary (SPS) measures on science and international standards, as well as working towards recognition of equivalent SPS measures.

The UAE-Australia CEPA is unique in reflecting their shared commitment to sustainable and resilient agriculture and food systems, and to further deepening their cooperation in these areas.

When it comes to technical barriers to trade (TBT), the CEPA seeks to make it easier for companies to export and import goods between the UAE and Australia by reducing unnecessary technical barriers and working towards recognising the other’s technical regulations and conformity assessments procedures.

Ambitious Services Liberalisation

The CEPA includes strong and expanded comments in a variety of service sectors. including financial, telecom and professional services. The CEPA ensures national treatment, reduced barriers, enhanced transparency and predictability as well as deeper cooperation between the UAE and Australia on services trade.

The commitments under the CEPA are designed to support the development and growth of services trade and enable businesses in both the UAE and Australia to expand with greater confidence and contribute to economic diversification and innovation.

Importantly, the CEPA provides business mobility for certain categories of professionals, which is important for companies with regional operations, professional service providers, and investors, while ensuring that each Party retain full control over border and entry rules.

The CEPA maintains each Partner’s right to regulate and carves out certain sensitive areas, such as public health or education services, that are supplied in the exercise of governmental authority.

Investment Facilitation

The CEPA investment facilitation chapter, along with the UAE-Australia Promotion and Protection of Investments Agreement, aims to create an attractive investment climate and expand trade in goods and services.

The CEPA provides channels for joint cooperation to facilitate investment as well as to enhance capacities to achieve inclusive, sustainable economic growth while advancing global environmental objectives.

Digital Trade

The CEPA brings greater coherence to a continuously evolving digital trading landscape, which is integral to today’s global economy. Enhancing confidence in digital trade and ensuring that digital trade flows benefit both businesses and consumers. The CEPA contains disciplines covering key issues, including dataflows, personal data protection, and cybersecurity, as well as maintaining the practice of not imposing any customs duties on electronic transactions. In addition, the CEPA provides a platform for enhancing collaboration on digital trade issues between the UAE and Australia.

Competition and Consumer Protection

The principles contained in the CEPA addressing competition and consumer protection ensure that businesses benefit from a strong and enforceable legal and administrative framework where consumers are informed and have greater confidence in the market. The rules provide a healthier, more efficient trade environment that supports sustainable growth.

Intellectual Property

The CEPA complements existing international principles and standards for the treatment, protection, and enforcement of Intellectual Property Rights (IPRs) in a manner that is conducive to invention, innovation, and creativity

Government Procurement

The CEPA sets out a comprehensive framework to open and improve government procurement markets between Australia and the UAE. Each Partner opens government purchases of goods, services and construction within set thresholds and for specific covered entities. For the UAE market, access is limited to Federal level entities.

Small and Medium-Sized Enterprises (SMEs)

The CEPA recognises SMEs as engines of job creation and driver of competitiveness. Through the CEPA, the UAE and Australia commit to cooperate in reducing barriers, sharing best practices, and supporting under-represented groups to access global markets and digital trade. Each Partner will also maintain an open website with key CEPA information, links, and practical guidance on customs, investment, and business rules to help SMEs benefit from the CEPA.

Indigenous Peoples Trade and Investment Economic Cooperation

The CEPA creates clear channels for collaboration, allowing Indigenous enterprises and mainstream businesses to build networks, enter supply chains and access new market opportunities, while ensuring the respect for indigenous peoples’ rights and recognising their unique contributions to trade and investment.

Environment and the Transition to Net Zero

The CEPA establishes a comprehensive framework to integrate environmental protection with trade and investment between the UAE and Australia, emphasising sustainable development and the transition to net zero emissions by 2050. The CEPA promotes high environmental standards, and cooperation on climate change, circular economy practices, renewable energy, and sustainable water and marine resource management. The CEPA also underscores the importance of conserving biodiversity, addressing pollution, preventing illegal wildlife trade, and managing invasive species. Businesses benefit from clear guidelines, support for green technologies, and encouragement to adopt environmentally responsible practices. Cooperation mechanisms include knowledge sharing, joint research, technical assistance, and public participation, ensuring that trade and environmental objectives are mutually supportive.

Trade, Gender Balance and Women’s Economic Empowerment

The CEPA emphasises the importance of women’s economic empowerment and encourages collaboration to promote women’s full participation in the economy, leadership, entrepreneurship, and safe, non-discriminatory workplaces, while aligning with international commitments.

Trade and Labour

The CEPA integrates labour considerations into the trade and investment environment, fostering a stable, productive, and inclusive workforce while supporting sustainable economic growth.

Economic Cooperation

The UAE and Australia are committed to deepening trade and investment links by working together across priority areas such as food security, agriculture, fisheries, logistics, tourism, e-commerce, halal industries, gems and jewellery, education and research, competition policy and global value chains. Economic cooperation between the trading Partners will maximise the benefits of the CEPA and support businesses in creating stronger linkages and benefiting more fully from the CEPA.

Transparency and Anti-Corruption

The CEPA affirms each Partners’ commitment to promptly publishing laws, regulations and trade agreements, as well as to notify the other Partner of major legislative changes, and to give businesses a chance to be heard in administrative proceedings. In addition, the CEPA reaffirms each Partner’s strong commitment to prevent and combat corruption and bribery in trade and investment matters.

Agreement Administration and Cross-Cutting Provisions

The CEPA establishes administrative and communication structures comprised of designated focal points, a joint committee and subcommittees that meet regularly and are tasked with managing and implementing the different aspects of the CEPA.

The UAE-Australia CEPA maintains each partner’s right to be free to take measures in exceptional cases to protect human life and health or public morals or for security reasons.

Disputes Settlement

The CEPA contains rules and procedures for the settlement of state-to-state trade disputes, starting with consultation, and moving to the establishment of a panel to adjudicate the dispute, while maintaining the Partners' ability, at all times throughout the dispute, to reach mutually amicable solutions. The CEPA’s state-to-state trade dispute settlement mechanism reinforces the partners’ commitment to trade liberalisation that is mutually beneficial.