UAE, Ukraine to boost bilateral trade agreement

The United Arab Emirates and Ukraine have concluded talks on a bilateral trade agreement, according to Reuters citing a joint announcement issued on Monday, preceding its official ratification.

The Comprehensive Economic Partnership Agreement (CEPA) is set to eliminate or reduce tariffs on various goods and products, dismantle trade barriers, and facilitate market entry for exporters from both nations, the announcement outlined.

Moreover, the CEPA aims to “aid Ukraine’s recovery and reconstruction of vital industries and infrastructure, while also bolstering supply chains to the Middle East and North Africa region for key exports like grains, machinery, and metals.”

Despite pressure from Western nations on Gulf oil producers to isolate Russia, a fellow OPEC+ member, the Gulf state has endeavoured to maintain neutrality in the Ukraine conflict. Negotiations for a trade pact with Ukraine commenced at the close of 2022.

In 2023, non-oil bilateral trade between the UAE and Ukraine amounted to $385.8 million, with combined investments totaling approximately $360 million by the end of 2022, spanning sectors such as logistics and infrastructure, travel and tourism, and advanced technology.

While Ukraine’s economy has borne the brunt of the conflict with Russia, the UAE is adopting a forward-looking approach to potential future gains. “We want to be prepared for Ukraine’s next phase,” remarked Thani al Zeyoudi, the UAE minister for foreign trade, to Reuters. Zeyoudi emphasised the significance of the CEPA as a means to establish an additional gateway to Europe via Ukraine. He noted that the agreement not only promises market access for goods and services but also enables UAE companies to enhance connectivity with the European Union, particularly if Ukraine eventually becomes a member of the bloc.