Negotiations on the Australia-United Arab Emirates Comprehensive Economic Partnership Agreement (CEPA) have concluded, marking a significant milestone for the wine industry.
The trade agreement opens new avenues for Australian exporters to penetrate the Middle Eastern market, which boasts approximately 58 million consumers and a combined GDP of AU$1.4 trillion.
Australia is the second-largest exporter of wine to the UAE by volume, according to IWSR data. The UAE is a crucial emerging market for Australian wine, acting as a pivotal hub for international trade.
“The UAE is a vital market for Australian wine, and we are excited about the continued growth opportunities this agreement brings,” said Lee McLean, Chief Executive of Australian Grape & Wine.
“The Australia-UAE CEPA offers a platform for ongoing dialogue and cooperation on technical matters to further strengthen trade relations between our countries.”
Australian Grape & Wine has commended the Australian Government for achieving this milestone and thanked Ministers Farrell, Watt, and Collins, along with their departments, for their dedicated efforts in securing the agreement.
Two-way investment between Australia and the UAE totaled $20.6 billion in 2023, with expectations for significant growth.
The new trade agreement is a “great deal” for Australian exporters, according to a statement from the Minister for Trade and Tourism.
Over 99% of Australian products will enter the UAE tariff-free, resulting in estimated tariff savings of $135 million in the first year, rising to $160 million per year once the agreement is fully implemented.
“Under this trade agreement, Aussie exports are expected to increase by $678 million per year, but this deal means more for Australia than just numbers,” said the Minister for Trade and Tourism, Don Farrell.
This agreement not only enhances trade, but also presents a strategic opportunity for investors in the wine industry to capitalise on the growing demand in the Middle East, thereby diversifying their portfolios and mitigating risks associated with market concentration.