Australia has announced a significant trade agreement with the United Arab Emirates, set to eliminate tariffs on approximately 99% of Australian products. This deal is expected to result in substantial economic benefits for Australia, with projected savings of A$135 million in the initial year following implementation.
The UAE, Australia's primary trade and investment partner in the Middle East, engaged in bilateral trade worth A$9.9 billion in 2023, with two-way investment reaching A$20.6 billion. This new agreement is anticipated to further strengthen these economic ties.
Don Farrell, Australia's Trade Minister, stated, "Under this trade agreement, Aussie exports are expected to increase by A$678 million per year, but this deal means more for Australia than just numbers." The agreement includes provisions for increased investment from Abu Dhabi in critical minerals, while also benefiting the mining industry through tariff reductions on alumina exports.
Australia's top exports to the UAE include a diverse range of products such as meat, dairy, oil seeds, seafood, steel, canola seeds, nuts, honey, coal, chickpeas, and lentils. This variety showcases Australia's strong agricultural and resource sectors, which have long been pillars of its export economy.
The Australian Meat Industry Council has expressed support for the trade deal, highlighting the enhanced access it will provide for Australian beef, lamb, and goat meat in a crucial market. This development is particularly significant for Australia's meat industry, known for its high-quality, grass-fed beef production.
"This trade agreement offers our farmers greater access to a vital market for Australian beef, lamb, and goat meat."
The trade agreement is expected to take effect later in 2024, marking a new chapter in Australia-UAE economic relations. This deal not only strengthens ties between the two nations but also aligns with their respective economic strategies.
For Australia, this agreement supports its efforts to diversify export markets and reduce dependence on any single trading partner. The UAE, on the other hand, continues its push to diversify its economy beyond oil, leveraging its strategic location between Asia, Europe, and Africa to become a global trade hub.
As both nations look to the future, this trade deal represents a significant step in fostering stronger economic ties and mutual growth opportunities.