“Significant step” towards closer trade ties with UAE
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Posted by David Sexton
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29 July, 2025
A “SIGNIFICANT step” toward strengthening Australian economic ties with the United Arab Emirates (UAE) is how new federal legislation has been described.
The Australian Federal Parliament introduced two key bills to bring the CEPA into effect, one amending the Customs Act 1901 (Customs Act) and another amending the Customs Tariff Act 1995 (Customs Tariff Act).
The bills have been referred to the Federation Chamber for further discussion.
In a paper published online, trade lawyer Alexander Uskhopov said this event marked “a pivotal moment in fostering deeper trade and investment opportunities between Australia and the UAE, promising mutual benefits for both economies”.
In an explanatory memorandum published on the Australian parliamentary website, it was noted that Australia and the UAE announced their intention to an agreement back in March 2022, with negotiations officially announced in December 2023.
“The agreement is Australia’s first free trade agreement with a nation of the Middle East and delivers on the Australian government’s commitment to opening new opportunities that will allow Australia to diversify our trade,” the memorandum stated.
“Through the agreement, Australian exporters will benefit from the elimination of tariffs on over 99 per cent of Australian goods exports to the UAE by value once fully implemented, estimated to increase Australian exports by around $678 million per year.
“The agreement is a modern and comprehensive free trade agreement delivering outcomes for Australian businesses in trade in goods, trade in services, investment, economic and technical cooperation, digital trade, intellectual property, government procurement, competition and consumer protection, small and medium sized enterprises, and includes outcomes for First Nations and indigenous peoples and businesses in a standalone chapter for the first time in an Australian free trade agreement.”
The agreement is also said to affirm Australia’s commitments under multilateral environmental agreements, contains provisions aimed at advancing women’s economic empowerment in trade and investment and supports a transparent and predictable regulatory environment for businesses.
