Australia–UAE CEPA Updates
On 29 September 2025, Australia and the United Arab Emirates (UAE) marked a significant milestone in their economic relationship with the activation of the Comprehensive Economic Partnership Agreement (CEPA). This landmark agreement is poised to enhance trade, investment, and cooperation between the two nations.
Key Highlights
· 99% of Australian exports to the UAE are now tariff-free: The CEPA eliminates tariffs on over 99% of Australian goods exports to the UAE, including beef, dairy, horticulture, and critical resources. This move opens doors for Australian producers and exporters to access a growing Middle Eastern market. T
· Projected first-year savings: A$135M → A$160M: Businesses are expected to benefit immediately from tariff reductions, with savings projected to increase as the agreement is fully phased in.
· Export boost: ~A$678M per year: Full implementation of the CEPA is expected to increase Australian exports to the UAE by approximately A$678 million annually.
· First Nations trade chapter: The agreement includes a dedicated chapter promoting First Nations trade and investment, offering preferential market access and support for Indigenous Australian exporters.
· Expanded services, investment, and digital trade access: The CEPA enhances access for Australian service providers in over 120 sectors, guarantees 100% foreign ownership in key sectors like education and health, and includes provisions for digital trade and investment.
Timeline at a Glance
· Nov 2024 – CEPA signed by Australian and UAE trade ministers.
· Aug 2025 – Australian Parliament passes enabling legislation.
· 29 Sept 2025 – CEPA activated during PM Anthony Albanese's visit to Abu Dhabi, including a tour of a LuLu supermarket.
What This Means
The activation of the CEPA marks a new era in Australia-UAE relations, offering significant opportunities for Australian businesses, particularly in agriculture, services, and Indigenous enterprises. The agreement not only facilitates increased trade but also fosters deeper economic ties and collaboration between the two nations.