Australia and UAE sign a new free-trade agreement

Already Australia’s biggest trading partner in the Middle East, the United Arab Emirates has signed a free-trade agreement that is set to benefit farmers and exporters.

Trade Minister Don Farrell in Shanghai this week. Picture: Will Glasgow

Tariffs will be eliminated on dozens of key agricultural exports into the United Arab Emirates under a free-trade agreement that is estimated to bring an additional $50m in annual revenue to Australian farmers.

Signed on Wednesday after nearly a year of negotiations, the deal eliminates tariffs on more than 99 per cent of Australia’s exports to the Middle East nation, including meat, dairy, grains and oilseeds, chickpeas, lentils, nuts, horticulture and honey.

Trade Minister Don Farrell said the UAE Comprehensive Economic Partnership Agreement would open up new opportunities for exporters, farmers, producers and businesses to diversify their markets.

“This is a great deal for Australian farmers and producers – over 99 per cent of Australian products will enter the UAE tariff free,” Senator Farrell said.

“This deal means more than just numbers. Every product we export to the world translates to thousands of Australian jobs.”

The UAE is already South Australia’s biggest trade and investment partner in the Middle East, with two-way trade worth $9.9bn and two-way investment worth $20.6bn.

It is also a significant distribution hub for The Gulf region.

Outside of agriculture, alumina and higher education are the primary Australian exports to the UAE.

Alongside the trade deal is a memorandum of understanding for investment co-operation in food and agriculture, which Agriculture Minister Julie Collins said would promote investment in supply chains and projects that enable producers and processors to diversify and create value-added products.

“It further enhances market access and diversification opportunities for our producers to an extremely lucrative market, not only in the UAE but across the whole of the Middle East as the UAE is an important trading hub for the region,” Ms Collins said.

“I am proud to say that it is the first FTA to contain a stand-alone chapter on sustainable agriculture and food systems, recognising agriculture’s essential role in ensuring food security, driving climate resilience, emissions reductions and other environmental outcomes.

“It also ensures that sustainability measures are not applied with a ‘one-size fits all approach’ and do not create barriers to trade for our world-class agricultural exports.”

The deal is the latest in a string of trade agreements between Canberra and other nations that has contributed to a general diversification of markets for Australian produce.

Following the recent trade agreement with India, agricultural exports to the subcontinent grew by 50 per cent in two years.

Non-agricultural products that will be given free access to the UAE include auto parts, iron, steel, gold, nickel, coal, diamonds, cold and flu medication, perfume and cosmetics.

In response, Australian tariffs will be cut on jewellery, perfumes, furniture, copper wire, glass containers and plastic imported from the Middle East.

The agreement was welcomed by business and agricultural organisations, but slammed by unions, which criticised the UAE’s treatment of workers.

Business Council of Australia chief executive Bran Black said the agreement was an important step for businesses and exporters wanting to diversify into the growing markets in the Middle East.

“(Trade) will be supercharged under the CEPA, particularly for agricultural products and commodities linked to our global effort to decarbonise,” Mr Black said.

“Greater trade is important for Australia’s economic success as one in four jobs are linked to the export sector.”