UAE, Türkiye Launch Ambitious talks to Double Bilateral Trade

 

 27 April 2021 - The United Arab Emirates and Türkiye have officially launched talks on a Comprehensive Economic Partnership Agreement (CEPA) to expand trade and investment ties that will underpin a new era of regional stability.

His Excellency Dr Thani Al Zeyoudi, UAE Minister of State for Foreign Trade, began negotiations with his counterpart, Türkiye’s Minister of Trade H.E. Mehmet Muş, in Istanbul. The deal promises to deliver enormous benefits for both countries and is expected to double bilateral trade from its current value of US$13.7 billion.

 

The UAE-Turkey CEPA will also contribute to add certainty to the economic recovery at a time when the world faces immense challenges from increasing food price volatility and soaring inflation to supply-chain disruption and lingering impact of the global pandemic.

By deepening cooperation between two of the region’s most important economies, a deal has the potential to strengthen the resilience of regional supply chains, increase investment flows, minimize economic shocks, accelerate innovation in priority sectors, create high-value jobs and generate sustainable, inclusive economic growth. 

 

The first round of negotiations began on April 26 in Istanbul and significant progress is expected to be made as the UAE aims to complete an unprecedented eight CEPAs this year.

 

“Our ambitious trade agreement with Türkiye will offer tremendous benefits to businesses, investors, entrepreneurs and consumers in the UAE,” H.E. Dr Thani Al Zeyoudi said. “By cutting tariffs, promoting the free movement of goods, facilitating capital flows and reducing trade barriers, we will make it easier than ever to do business with Turkey and vice versa. Together, we will explore new opportunities in aviation, tourism, logistics, infrastructure, food security, renewable energy and 4IR technologies. 

 

His Excellency added: “Broadening our economic horizons through deeper partnerships and closer international cooperation will also contribute to greater stability for the entire region. This is a milestone in our progressive trade agenda that will help to double the size of our economy and lay the foundations for the next 50 years of growth and prosperity.”

 

Türkiye is the UAE’s seventh-largest trading partner and commercial ties enjoyed stellar growth in recent years. In 2021, non-oil trade reached US$13.7 billion - up 86 percent from pre-pandemic levels in 2019.

 

Building on this relationship reflects a strong desire to establish deeper, more meaningful ties. In pursuit of this, the UAE agreed to invest US$10 billion in Türkiye during a visit to Ankara by His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, in February 2022.

 

It was followed by Türkiye President Recep Tayyip Erdogan’s visit to Abu Dhabi in February 2022. He saw 13 strategic agreements across defence, technology, trade, climate change, agriculture, healthcare and industry signed to galvanise the renewed friendship and cooperation between both nations.

During his visit to Turkey, H.E. Dr Thani Al Zeyoudi will also take part in a number of official bilateral meetings with Turkish ministers and senior officials, including H.E. Mustafa Varank, Minister of Industry and Technology, H.E Fatih Dönmez, Minister of Energy and National Resources, H.E Adil Karaismailoğlu, Minister of Transport and Infrastructure, and H.E Ahmet Burak Dağlıoğlu, President of Investment Office.