UAE + Malaysia complete CEPA negotiations to reduce trade barriers

UAE + Malaysia complete CEPA negotiations: The UAE’s Foreign Trade Minister Thani bin Ahmed Al Zeyoudi has concluded negotiations on a Comprehensive Economic Partnership Agreement (CEPA) with Malaysia’s Investment, Trade, and Industry Minister Zafrul Aziz, Wam reported on Thursday. The CEPA aims to eliminate or lower tariffs, reduce trade barriers, and promote private sector collaborations as well as new investments. The UAE, through its CEPA program, aims to increase its non-oil foreign trade to AED 4 tn.

The UAE aims to capitalize on this agreement to boost certain sectors: Malaysia offers several opportunities for UAE firms, especially in high-growth sectors such as energy, logistics, manufacturing, and financial services, Al Zeyoudi said. Malaysia currently ranks as the UAE’s 12th largest Asian trading partner, with the non-oil trade between the two nations amounting to USD 2.5 bn in 1H 2024.

What they said: “We view the UAE as a strategic hub for Malaysian exporters to access markets in the Middle East, North Africa and certain parts of Europe, particularly as Malaysian exports such as electrical and electronics, machineries, jewelry, prepared foodstuff, tropical fruits, palm oil, cocoa and rubber would immediately enjoy zero import duties when this Agreement comes into force,” Aziz said in the statement.

Future plans: The UAE is currently strengthening its ties through CEPA agreements with many countries, especially with the Association of Southeast Asian Countries (ASEAN) bloc, with agreements with Indonesia and Cambodia pending. Agreements with Vietnam and the Philippines are also in the works, and are set to be finalized by the end of the year.

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