Australia inks new trade deal with major Middle East trading partner

Australia has signed a new Comprehensive Economic Partnership Agreement with its largest trade and investment partner in the Middle East.

Australia has signed a comprehensive free-trade agreement with the United Arab Emirates, unlocking $50 million worth of tariff savings for Australian farmers.

On Tuesday Trade Minister Don Farrell announced that negotiations on the deal had concluded that would see tariffs wound back on meat, dairy, oil seeds, seafood, canola seeds, nuts, honey, chickpeas and lentils, among other exports.

“Under this trade agreement, Aussie exports are expected to increase by $678 million per year, but this deal means more for Australia than just numbers,” Mr Farrell said. “The UAE has some of the largest Sovereign Wealth Funds in the world. A trade agreement with the UAE will facilitate investment … (and) open up new opportunities for our exporters, farmers, producers and businesses to diversify their markets.”

Trade Minister Don Farrell announced the new trade deal on Tuesday. Picture: Martin Ollman

The National Farmers’ Federation has welcomed the announcement, describing the UAE as an important market for Australian farmers in their quest to diversify.

“Australian farmers export more than 70 per cent of what they produce, so gaining new and diverse market access is critical to the sector’s resilience,” NFF chief executive Tony Mahar said.

“This agreement also marks a strategic opening into the Middle East, a growing market of more than 58 million people with a heavy reliance on food imports.”

It is unclear what the tariffs will be reduced to.

Mr Mahar said he looked forward to seeing further details of the agreement once they were available.

The deal is expected to give tariff-free access to 99 per cent of Australian products, as well as preferential access to Australian exporters to the UAE’s premium food market.

It is the first major trade agreement Mr Farrell has brokered since he walked away from a “dud” free trade agreement with the EU last year.

Australia and the UAE are working to finalise and implement the deal “as soon as possible”.

Agriculture Minister Julie Collins said the Australia-UAE trade agreement gave Australian farmers a significant commercial edge over other international competitors for agriculture and premium foods.

“This is particularly great news for regional communities and local jobs,” Ms Collins said.

Major lamb processor and exporter Roger Fletcher said the deal would cut costs “for hardworking Australian businesses competing in world markets”.