New Zealand Prime Minister Christopher Luxon is set to embark on a trip to the United Arab Emirates (UAE) tomorrow, where he will participate in the signing of an important trade agreement known as the Comprehensive Economic Partnership Agreement (CEPA). This agreement is poised to significantly reduce tariffs on over 98 percent of New Zealand’s exports to the UAE, enhancing economic collaboration between the two nations.

Luxon described the UAE as a key partner for New Zealand, emphasizing their joint efforts on various initiatives such as renewable energy projects in the Pacific and initiatives aimed at promoting stability in the Middle East. He pointed out that around 4,000 New Zealanders live and work in the UAE, which serves as a vital transport hub, with over half a million travelers from the UAE to New Zealand annually.

The CEPA will be formally signed by Trade Minister Todd McClay and will be accompanied by an investment agreement. Currently valued at NZ$1.3 billion, the trade relationship between New Zealand and the UAE is expected to grow as a result of this agreement. Luxon expressed optimism that this deal would act as a springboard for New Zealand companies, aligning with the government’s goal to double export values in the coming decade.

During his visit, Luxon intends to showcase New Zealand as a globally connected trading nation and a leader in sustainable innovations, thereby promoting it as an attractive destination for foreign investment. The signing of this agreement not only underscores New Zealand’s commitment to enhancing international trade partnerships but also reflects a broader trend of strengthening economic ties with other nations, particularly within the Pacific region.

Overall, the signing of the CEPA marks a significant milestone in bolstering New Zealand’s trade relationships, paving the way for a more prosperous economic future for both countries. This partnership is expected to foster increased trade, investment opportunities, and collaborative efforts in addressing global challenges, demonstrating the potential for a mutually beneficial relationship as both nations look forward to a brighter economic horizon.