On Thursday, New Zealand announced a groundbreaking trade agreement with the United Arab Emirates that is set to revolutionize economic prospects for exporters and enhance supply chains with one of its key trading allies in the Middle East.
The trade deal is expected to eliminate tariffs on 98.5% of New Zealand’s exports, with that figure projected to climb to 99% within the next three years, according to Trade Minister Todd McClay.
“This deal will open up new avenues for New Zealand businesses in the thriving UAE market, aiding us in our goal of doubling export value within a decade,” McClay remarked.
Bilateral trade between the two nations amounted to NZ$1.3 billion ($813.5 million) in the year ending June 2024.
The agreement was reached in just over four months after talks commenced in May, marking New Zealand’s fastest-ever trade deal negotiation, McClay revealed.
It is worth noting that Australia and the UAE finalized a similar trade pact earlier this month.
($1 = 1.5980 New Zealand dollars)
Analysis:
This groundbreaking trade agreement between New Zealand and the United Arab Emirates is poised to have a significant impact on both countries’ economies. By removing tariffs on the majority of New Zealand’s exports, this deal opens up new possibilities for businesses in the dynamic UAE market. The projected increase in trade volume over the coming years indicates a promising future for both nations’ economies. As similar agreements are being struck around the world, it is essential for businesses and investors to stay informed and capitalize on these opportunities for growth and expansion.