The Prime Minister of New Zealand, Christopher Luxon, is set to travel to the United Arab Emirates (UAE) tomorrow to oversee the signing of a significant trade agreement. The Comprehensive Economic Partnership Agreement (CEPA) will drastically reduce tariffs on over 98 percent of New Zealand’s exports to the UAE, a move that is expected to bolster trade relations between the two nations.

In his statement, Luxon emphasized the UAE’s importance as a trusted partner for New Zealand, highlighting their collaboration on various mutual interests, including renewable energy initiatives in the Pacific and efforts to address conflicts in the Middle East. He pointed out that approximately 4,000 New Zealanders are living and working in the UAE, which also serves as a critical logistics hub, with over half a million people traveling between the two countries each year.

Luxon will witness the formal signing of the CEPA and a related investment agreement by Trade Minister Todd McClay. Currently, trade between New Zealand and the UAE stands at NZ$1.3 billion. The Prime Minister expressed his optimism that the new agreement will serve as a platform for New Zealand businesses to expand their trade and investment endeavors, aligning with the government’s goals to double the value of exports in the next decade.

During his visit, Luxon aims to promote New Zealand as a connected trading nation and an attractive destination for sustainable investments and technological innovation.

This new trade partnership not only illustrates New Zealand’s commitment to enhancing international trade but also reflects a growing trend in the Pacific region toward closer economic ties and cooperative agreements, similar to the discussions around the Pacific Agreement on Closer Economic Relations (PACER) Plus, which seeks to facilitate economic collaboration among Pacific island nations.

Overall, this agreement represents a promising opportunity for both countries, fostering economic growth and greater bilateral relations, while paving the way for further international partnerships in the region.