New Zealand exporters are set to benefit from a major new trade agreement with the United Arab Emirates (UAE), after the NZ-UAE Comprehensive Economic Partnership Agreement (CEPA) passed into law last week.
The agreement removes tariffs on 98.5 percent of New Zealand exports immediately, rising to 99 percent within three years. It opens doors to a $500 billion import market, where the UAE imports 90 percent of its food and is actively seeking premium, sustainable products from trusted global sources.
Trade and Investment Minister Todd McClay hailed the agreement as a major win for New Zealand businesses.
“The NZ-UAE CEPA delivers real benefits for New Zealand exporters, lowering costs, increasing access, and securing a stronger presence in the Middle East,” McClay said in a statement.
“This high-quality trade agreement builds on New Zealand’s strengths. UAE consumers are actively seeking safe, fresh products from around the world and are willing to pay more for them. This agreement gives New Zealand exporters an opportunity to lead in this competitive market.”
The UAE is already New Zealand’s 12th largest trading partner, with two-way trade worth $1.35 billion last year. The agreement is expected to accelerate that growth by reducing red tape, boosting services trade, and strengthening investment ties.
McClay said CEPA plays a key role in advancing the Government’s economic goals.
“The CEPA is another step toward achieving the Government’s goal of doubling the value of exports in 10 years,” he said. “Growing our trade relationships helps boost the economy, lift incomes, and provide the public services Kiwis deserve.”
The agreement will formally enter into force once ratified by both parties.
ExportNZ has welcomed the agreement, calling it a strategic leap forward for exporters looking to access the fast-growing Gulf region.
ExportNZ Executive Director Joshua Tan said the deal would deliver meaningful commercial opportunities across both goods and services.
“The UAE is a fast-moving, high-value market with demand for exactly the kinds of quality, sustainable, and trusted products and services New Zealand is known for,” said Tan.
“We not only see opportunities for exporting products and services to the UAE, but also fostering investment opportunities in New Zealand. We are excited about the potential for growth in the New Zealand-Emirati economic relationship.”
Tan also acknowledged the swift work of officials in pushing the agreement forward.
“ExportNZ acknowledges the hard work of our government officials and the Minister for Trade & Investment for moving quickly to conclude and pass this high-quality agreement. We look forward to notification of when the Comprehensive Economic Partnership Agreement will come into force for exporters to begin leveraging.”
The UAE agreement adds to New Zealand’s growing portfolio of modern trade deals aimed at strengthening market access, cutting costs for exporters, and boosting the country’s global competitiveness.
As businesses prepare to take advantage of the UAE opportunity, ExportNZ and its partners across the BusinessNZ network are expected to play a key role in helping exporters navigate and maximise the benefits of the new agreement.
