The UAE and Chile inked an economic partnership yesterday aimed at boosting bilateral investments and private sector partnerships, as well as trade between the countries, Wam reports. The agreement marks the UAE’s second economic partnership with a South American country following the agreement signed with Colombia in April.

The agreement will eliminate tariffs for 99.5% of UAE imports from Chile, paving the way to achieve the countries’ target of doubling non-oil trade to USD 750 mn by 2030, up from USD 306 mn last year, Wam wrote. UAE exports to Chile are projected to rise by USD 247 mn by the end of the decade, according to UAE estimates.

Background: Foreign Trade Minister Thani bin Ahmed Al Zeyoudi and Chile’s Foreign Minister Alberto van Klaveren concluded negotiations on the trade and economic agreement between the two countries last April.

Not a first for the UAE: This agreement is the UAE’s second recent CEPA with a South American country. The Gulf country signed a CEPA with Colombia in April 2023 to eliminate or reduce tariffs in multiple supply chains as well as remove trade barriers and enhance market access in sectors including energy, telecommunications, tourism, and food production.

REMEMBER- The UAE is in talks with Japan and Malaysia to finalize the terms of bilateral trade agreements, with up to seven pacts set to be inked before year-end, in addition to seven more agreements pending final ratification, Al Zeyoudi said earlier this month. This month alone, the UAE formalized its trade pact with Mauritius, and concluded negotiations with Morocco on the terms of the agreement.

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