UAE-Ukraine Cepa marks another milestone in Gulf state’s efforts to improve non-oil foreign trade

The UAE and Ukraine have just finalised the terms of a Comprehensive Economic Partnership Agreement (Cepa), in the latest milestone in efforts to expand the Gulf state’s network of trading partners across global markets, as per official reports.

The UAE seeks to elevate the value of its non-oil foreign trade to Dh4 trillion by 2031. UAE’s Minister of State for Foreign Trade, Dr Thani bin Ahmed Al Zeyoudi, and Ukraine’s First Deputy Prime Minister and Minister of Economy, Yulia Svyrydenko, signed a joint statement.

Once implemented, the ambitious UAE-Ukraine Cepa is expected to substantially remove or reduce tariffs on key product lines, remove unnecessary trade barriers and promote fair market access to exporters from both sides.

The #UAE has taken a major step forward in our foreign trade agenda. Today, I joined HE @Svyrydenko_Y, First Deputy PM and Minister of Economic Development & Trade for #Ukraine, to conclude negotiations of a UAE-Ukraine CEPA and open a new chapter of mutual growth. 🇦🇪🇺🇦 pic.twitter.com/hDg8MG9x5M

— د. ثاني أحمد الزيودي (@ThaniAlZeyoudi) April 29, 2024

“Ukraine is a bridge to Europe for our exporters”

Overall, the agreement is set to support Ukraine’s recovery and the rebuilding of important industries and infrastructure, besides also helping bolster supply chains to the vast Mena region for major exports such as grains, metals and machinery.

Yulia Svyrydenko said: “The conclusion of Cepa negotiations … marks a historic milestone in our bilateral relations. I am confident that the Ukrainian and Emirati business communities will fully capitalise the opportunities presented by the Ukraine-UAE Cepa.”

Last year, both countries shared a sizeable $385.8 million in non-oil trade, with joint Foreign Direct Investment (FDI) stock standing at $360 million by the end of 2022 across different sectors such as logistics and infrastructure, and travel and tourism.

UAE-Ukraine Cepa adds to 14 existing Cepas

In his statement, Thani Al Zeyoudi said: “Ukraine is a bridge to Europe for our exporters and an important ally in our food security imports. Once implemented, the Cepa will offer Ukraine’s industrialists and entrepreneurs a new platform from which they can expand.”

In addition, the minister noted that the key agreement is set to play an active role in the revitalisation of the economy of Ukraine, and that the UAE looks forward to the ratification of the deal and the important opportunities it is expected to create on both sides.

Interestingly, the finalisation of the terms of UAE-Ukraine Cepa adds to the 14 Cepas that have either already entered into force, been formally signed or have been successfully negotiated with strategic markets on the international trade map.