Zawya | 30 October 2023
CEPA set to drive UAE-Turkiye’s trade
by Muzaffar Rizvi, Khaleej Times
The UAE-Türkiye CEPA, the third major economic partnership after India and Israel, will unlock a range of opportunities for private sector in two of the world’s most dynamic centres of growth by eliminating trade unnecessary trade barriers.
The UAE and Turkey are on track to bolster their trade and investment in coming years following a successful implementation of Comprehensive Economic Partnership Agreement (CEPA) in September.
The new economic partnership between the two countries will not only maintain an upward trajectory for bilateral trade but also establish pathways for investment into priority sectors such as renewable energy, logistics, tourism, the Islamic economy, infrastructure, technology, fintech, industry and services, among others.
In addition to promising sectors, the economic partnership will benefit AgriTech, construction, ICT, telecommunications, and pharmaceuticals.
The UAE-Türkiye CEPA, the third major economic partnership after India and Israel, will unlock a range of opportunities for private sector in two of the world’s most dynamic centres of growth by eliminating trade unnecessary trade barriers. The strategic initiative will promise to deliver a new era of trade and investment cooperation with two rapidly growing global economies.
Analysts and economic experts said the UAE-Türkiye economic partnership will help turbocharge growth, prosperity and expansion through leveraging their strategic locations as key regional and international business hubs. They are of the view that CEPA will streamline the movement of non-oil trade and ensure resilient supply chains in addition to channelise investment into promising sectors.
“The deal, which aims to double bilateral non-oil trade to $40 billion within five years, will open new business opportunities and generate thousands of job opportunities in the two countries,” according to an analyst.
The CEPA aims to stimulate the non-oil trade by reducing or eliminating customs duties on 82 per cent of tariffs in both countries, covering 96 percent of their traded goods. It will contribute to establishing long-term partnerships between the two countries’ business communities and lay down a solid foundation for strong trade and investment relations in years to come.
CEPA — a significant move
Dr Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, termed the implementation of CEPA with Türkiye as a significant step forward in the UAE’s foreign trade programme and said the CEPAs play a vital role in attaining the nation’s objectives to double the country’s non-oil foreign trade to Dh4 trillion ($1.1 trillion) and elevate national exports to Dh800 billion.
The minister said the Comprehensive Economic Partnership Agreement signed between the UAE and Turkey, will contribute to the launch of a new era of economic integration between the two countries.
“Our trade and investment ties continue to deepen and the CEPA agreement will create more opportunities for the UAE and Turkish business communities. It will open new paths for exporters of goods and services to the two countries and surrounding regional markets, stimulating trade and investment flows in both countries," Al Zeyoudi said at the UAE-Turkey Business Forum in July.
CEPA strategy clicks
The UAE has evolved CEPA strategy to establish stronger economic relations with strategically important nations around the world. It has implemented CEPAs with India, Israel, Turkey and Indonesia so far.
The emirate is in talks to conclude economic partnerships with major countries to broaden its investment horizon globally and increase its foreign trade to Dh4 trillion ($1.09 trillion) by 2031. It is targeting a total of 22 countries and five economic blocs, which will cover a total of 103 countries and represent up to 95 per cent of total global trade.
The emirate is expected to conclude four to six agreements by the end of the year and that’s going to create huge opportunities for our manufacturers and factories as Cepas could contribute to more than 2.6 per cent of national gross domestic product by 2031.
“Comprehensive economic partnership agreements with India, Israel, Indonesia and Turkey increased the number of people manufacturers could reach by 1.6 billion,” according to experts.
> CEPA enters into force at September 1, 2023
> 82% of goods eliminate or reduce customs duties
> 93% non-oil bilateral trade benefit from the partnership
> $40 billion new business opportunity by 2031