Trade Minister Don Farrell issued a media release on 13 December announcing that Australia will start negotiating a trade agreement with the United Arab Emirates (UAE) next year, as it seeks to diversify its exports and move away from reliance on China.
“The Government is committed to securing a trade agreement with the UAE to drive Australian exports, economic growth and create more well-paying jobs across the country,” Mr Farrell said in the statement.
The move comes after trade talks between Australia and the European Union collapsed in October, with Canberra saying the EU did not offer enough market access for its agricultural products.
The UAE is seen as a gateway to the region and beyond. Australia’s trade ministry said two-way trade in goods and services between Australia and the UAE was worth $9.3 billion in 2022. It said the UAE was Australia’s 19th largest trading partner and key Australian exports to the country included alumina, meat, oil seeds, and education, with three Australian universities having campuses in-country.
Mr Farrell has been pressing for Australia not to over-rely on China after Beijing reacted to Australia’s call for an inquiry into the origins of COVID-19 by imposing restrictions on a range of imports from the country.
A trade agreement with the UAE would create new commercially meaningful opportunities for Australian goods and services exporters seeking to diversify trade. It will also offer the opportunity to deepen our cooperation in our shared ambition to transition to net-zero, through greater investment.
One of the key highlights of this agreement is the boost it will provide to exports from both sides. Australian businesses gain access to the thriving markets of the United Arab Emirates, known for its economic diversity and strategic location. Similarly, Emirati businesses can tap into the high-quality goods and services that Australia is renowned for, creating a win-win scenario for both parties.
For some background, read our piece from last year: Australia-UAE CEPA Developments.
For more information about international trade and shipping – whether with the UAE or any other point on the globe – contact us here at Colless Young. As licensed Customs Brokers and Freight Forwarders we offer correct, professional advice on all your import and export transactions. We are based in Brisbane and provide a complete range of logistics services, including sea cargo, through all Australian ports and airports.
