On Monday, the UAE and Chile inked a Comprehensive Economic Partnership Agreement (Cepa) in Abu Dhabi, setting the stage for enhanced economic cooperation between the two nations. The agreement was sealed during an official visit by Chile's President Gabriel Boric to the UAE, where he met with President Sheikh Mohamed to explore avenues for bolstered collaboration across various sectors. The pact was formally signed by Dr Thani bin Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade, and Alberto van Klaveren, Chile’s Minister of Foreign Affairs, at a ceremony held in the UAE capital.
This agreement, a part of the UAE's ongoing foreign trade initiatives, aims to unlock new prospects by either abolishing or lowering customs duties on 99.5 percent of the UAE's imports from Chile, facilitating market access for service exports, eliminating trade barriers, and promoting investment and joint ventures. These efforts are expected to boost non-oil bilateral trade between the UAE and Chile to $750 million by 2030, surpassing the $306 million recorded in 2023. Additionally, the deal is anticipated to increase the value of UAE exports by $247 million by 2030, as per official UAE projections.
Dr Al Zeyoudi praised the agreement as a pivotal achievement for the UAE, highlighting its potential to deepen ties with South America. He noted that Chile presents numerous opportunities for the UAE's private sector, especially in sectors like manufacturing, mining, financial services, renewable energy, tourism, and agriculture. Moreover, the Cepa underscores a shared commitment to sustainable growth, ranging from trade technology to eco-tourism, positioning both countries to collaboratively shape the future economy.
Van Klaveren expressed his confidence in the agreement, stating it marks Chile's inaugural trade deal with a Middle Eastern, particularly Gulf, country. He emphasized that the broad liberalization of market access established by the Cepa will significantly enhance bilateral trade and facilitate future negotiations on an Investment Agreement. This agreement elevates Chile's relationship with the UAE to new heights and solidifies its presence in the region.
Chile, the fourth-largest economy in South America with a GDP exceeding $300 billion, is a global leader in copper production and the second-largest in lithium. It also boasts extensive agriculture, fishery, and forestry resources. The UAE has been an active investor in Chile, with significant investments in fruit production and export, real estate, and transportation. This Cepa follows another significant agreement with Colombia signed earlier this year, underscoring the UAE's strategic focus on South America through its Cepa program, launched in September 2021.
Foreign trade continues to be a cornerstone of the UAE's economic strategy. In 2023, the UAE achieved a record high in non-oil trade, reaching $701 billion, a 12.6 percent increase from 2022 and a 34.7 percent rise from 2021.
