Australian Grape & Wine has welcomed the finalization of the Australia-UAE Comprehensive Economic Partnership Agreement (CEPA).
Currently, Australia ranks as the second-largest wine exporter to the UAE by volume, according to IWSR data. The UAE is an important emerging market for Australian wine and acts as a key hub for international trade.
This trade agreement opens doors for Australian exporters looking to enter the Middle East, a region with around 58 million consumers and a combined GDP of A$1.4 trillion.
In 2023, two-way investment between Australia and the UAE reached $20.6 billion, and this figure is expected to grow significantly.
The new agreement will allow over 99 percent of Australian products to enter the UAE without tariffs. This change is estimated to save Australian exporters $135 million in the first year, rising to $160 million annually once the agreement is fully implemented.
Lee McLean, Chief Executive of Australian Grape & Wine, stated, “The UAE is a vital market for Australian wine, and we are excited about the growth opportunities this agreement presents. The Australia-UAE CEPA will enhance ongoing discussions and cooperation on technical matters to strengthen trade relations between our countries.”
McLean also expressed gratitude to the Australian Government, thanking Ministers Farrell, Watt, and Collins for their efforts in securing this agreement. He looks forward to reviewing the full details soon.
Minister for Trade and Tourism Don Farrell commented on the deal, saying, “We are a trading nation, and the Albanese Government is committed to creating new opportunities for our exporters, farmers, producers, and businesses to diversify their markets.”
He highlighted that the UAE hosts some of the largest Sovereign Wealth Funds globally. A trade agreement with the UAE will facilitate investment, which is key to the Albanese Government’s goal of becoming a renewable energy superpower.
Farrell noted that Aussie exports are expected to increase by $678 million annually. However, he emphasized that the agreement represents more than just numbers.
“More trade means higher-paying jobs, increased opportunities for our businesses, greater investment to build things here in Australia, and lower bills for Australian households,” he added.
