Following a joint announcement issued on Monday, the United Arab Emirates and Ukraine have wrapped up discussions on a bilateral trade agreement, as reported by Reuters. The agreement, named the Comprehensive Economic Partnership Agreement (CEPA), is slated for official ratification.
Outlined in the announcement, the CEPA aims to abolish or lessen tariffs on various goods and products, dismantle trade barriers, and facilitate market entry for exporters from both countries.
Furthermore, the CEPA seeks to support Ukraine’s recovery and reconstruction efforts in vital industries and infrastructure, while also enhancing supply chains to the Middle East and North Africa region for key exports such as grains, machinery, and metals.
Despite Western nations’ pressure on Gulf oil producers to distance themselves from Russia, also an OPEC+ member, the UAE has maintained a stance of neutrality in the Ukraine conflict. Negotiations for a trade pact with Ukraine commenced at the end of 2022.
In 2023, non-oil bilateral trade between the UAE and Ukraine totaled $385.8 million, with combined investments reaching approximately $360 million by the close of 2022. These investments span various sectors including logistics and infrastructure, travel and tourism, and advanced technology.
While Ukraine’s economy has faced challenges due to the conflict with Russia, the UAE is adopting a forward-looking approach to potential future gains. Thani al Zeyoudi, the UAE minister for foreign trade, highlighted the importance of the CEPA as a means to establish an additional gateway to Europe via Ukraine. Zeyoudi emphasized that the agreement not only promises market access for goods and services but also enables UAE companies to enhance connectivity with the European Union, particularly if Ukraine eventually becomes a member of the bloc.