- Registration date2023-10-17
-
Attached file
Minister for Trade Dukgeun Ahn and the United Arab Emirates (UAE) Minister of State for Foreign Trade Thani bin Ahmed Al Zeyoudi held the Korea-UAE trade ministerial meeting on October 14 in Seoul, where they signed the joint statement announcing the conclusion of negotiations on the Korea-UAE Comprehensive Economic Partnership Agreement (CEPA), which is Korea’s 24th free trade agreement (FTA).
In accordance with the anticipated “New Middle East Boom” fostered subsequent to President Yoon Suk Yeol’s state visit to UAE in January this year, the two countries’ trade authorities seriously pushed forward the negotiations based on a firm consensus on the need for a prompt CEPA settlement, which has come to fruition on the occasion of the Korea-UAE trade ministerial talks.
The two countries’ trade chiefs agreed that the swift conclusion of the Korea-UAE CEPA should serve as a momentum for advancing bilateral relations in economy and trade by strengthening their forward-looking economic cooperation in energy, resources, bio and high-tech industries as stated in the CEPA Annex.
UAE is Korea’s 16th largest trade partner, with bilateral trade reaching approximately USD 19.5 billion in 2022. Mutual direct investments amounted to $7.1 billion in the same year.
As of 2022, 178 Korean companies are currently operating in UAE. It is expected that the Korea-UAE CEPA will contribute to raising the stability and predictability of Korean firms’ UAE market entrance and supporting their business pursuits across the Middle East and Northern Africa as well.
The Korean government plans to proceed with legal scrubbing, translation and other necessary procedures for a formal signing by the first half of 2024, followed by an economic impact assessment and the National Assembly’s approval of ratification for the CEPA’s prompt entry into force.
The Korea-UAE CEPA joint statement is as follows:
JOINT STATEMENT
BETWEEN THE REPUBLIC OF KOREA AND THE UNITED ARAB EMIRATES
ON THE CONCLUSION OF NEGOTIATIONS
FOR THE COMPREHENSIVE ECONOMIC PARTNERSHIP AGREEMENT
We, the Minister for Trade of the Republic of Korea, Dukgeun Ahn, and the Minister of State for Foreign Trade of United Arab Emirates, Thani bin Ahmed Al Zeyoudi, are pleased to announce today the conclusion of negotiations on the Korea-UAE Comprehensive Economic Partnership Agreement (CEPA).
The Korea-UAE CEPA constitutes as an extensive agreement that will contribute to enhancing bilateral trade and economic relations by substantially eliminating tariffs, reducing non-tariff barriers and promoting trade in goods, services and investments.
The countries have concluded the negotiations, reaching a significant milestone in light of the strategic bilateral relationship. The CEPA will serve as a catalyst for the enhancement and promotion of economic relations while also increasing and diversifying bilateral trade.
The CEPA, which creates a framework for the countries’ economic trade relations, will provide favorable conditions for the business communities and serve as a platform for cooperation through mechanisms under the Agreement, thus allowing for ongoing dialogue to foster greater economic ties.
Signed in Seoul on October 14, 2023
|
For the Government of the Republic of Korea |
For the Government of the United Arab Emirates |
|
|
|
|
Dukgeun Ahn |
Thani bin Ahmed Al Zeyoudi |
|
Minister for Trade |
Minister of State for Foreign Trade |