Prime Minister Christopher Luxon of New Zealand is set to visit the United Arab Emirates (UAE) to oversee the signing of a significant trade agreement, the Comprehensive Economic Partnership Agreement (CEPA), which aims to significantly reduce tariffs on over 98 percent of New Zealand’s exports to the UAE. This landmark agreement signifies the strengthening economic ties between New Zealand and the UAE, both nations sharing common interests in various sectors, including renewable energy generation and regional stability.
Luxon expressed his enthusiasm for the partnership in a statement, calling the UAE a trusted ally for New Zealand. He noted the UAE’s critical role as a transportation and logistics hub, facilitating the movement of more than half a million visitors to New Zealand annually and providing opportunities for the approximately 4,000 Kiwis residing in the UAE.
The CEPA is expected to provide a substantial boost to trade, which is currently valued at NZ$1.3 billion, and serves as a foundational step towards the New Zealand government’s goal of doubling export value over the next decade. Luxon will also promote New Zealand as a prominent player in global trade, highlighting its innovation in sustainable technology and its desirability as an investment destination.
This agreement comes at a time when discussions surrounding broader trade dynamics, including the Pacific Agreement on Closer Economic Relations (PACER) Plus featuring other Pacific nations, are taking place. The insights from the business community in those discussions could certainly complement and benefit from the initiatives launched through the CEPA with the UAE.
Overall, the signing of the CEPA is a promising development that not only enhances economic ties but also showcases New Zealand’s commitment to expanding its trading networks in a sustainable manner, paving the way for increased investment and further collaboration in the region.
Summary: New Zealand’s Prime Minister Christopher Luxon is heading to the UAE to witness the signing of the CEPA, which cuts tariffs on over 98% of exports. This agreement boosts trade valued at NZ$1.3 billion and aligns with the government’s goal to double export value in ten years, emphasizing sustainable growth and innovation.
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