Australia–UAE trade deal could benefit Aussie food producers

The federal Minister for Trade, Senator Don Farrell, announced on 17 September that the negotiations on the Australia–United Arab Emirates Comprehensive Economic Partnership Agreement (AUUAE-CEPA) have concluded.

Two-way investment between Australia and the UAE totalled $20.6 billion in 2023, and this is expected to increase with the new trade agreement. Key Australian exports to the UAE include alumina, meat, dairy, oil seeds, seafood, steel, canola seeds, nuts, honey, coal, chickpeas, lentils and higher education.

For food producers, the AUUAE-CEPA could provide opportunities to diversify into the Middle East, a market of around 58 million consumers and a combined GDP of AU$1.4 trillion.

Over 99% of Australian products will now be able to enter the UAE tariff-free, resulting in estimated tariff savings of $135 million in the first year, rising to $160 million per year once the agreement is fully implemented.

The agreement will deliver benefits for Australian farmers and food producers, with estimated tariff savings of $50 million per year for our food and agriculture exports.

Australian vegetable industry body AUSVEG welcomed the securing of the AUUAE-CEPA, emphasising that the deal will help further secure and develop one of the largest export markets for Australian vegetables.

In 2023, Australia exported almost 40,000 tonnes of vegetables to the UAE, worth $34 million. This included 33,000 tonnes of carrots, more than 4200 tonnes of onions, and nearly 2000 tonnes of potatoes.

AUSVEG CEO Michael Coote said the securing of the deal was an important development in the longer-term trading relationship between Australia and the UAE.

“The UAE is a key and valued long-term trading partner for the Australian vegetable industry,” Coote said.

“This deal is an important step that will lock in and underpin the vegetable industry’s ability to trade competitively in a UAE market, where Australian exporters currently enjoy tariff-free trade for most fresh vegetables.”

The removal of tariffs under the agreement has also been welcomed by the Australian Meat Industry Council, with demand for Australian beef, lamb and goat meat noted.

The AUUAE-CEPA also includes commitments on promoting labour rights, on protecting the environment, and on sustainable development.

Australia and the UAE are now both working to formalise the legal treaty text in preparation for signing later this year.

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