The Government backs the United Arab Emirates to double trade as New Zealand enters negotiations with the Middle Eastern country.
Minister for Trade Todd McClay announced today that New Zealand and the United Arab Emirates (UAE) will commence negotiations on a free trade agreement (FTA).
McClay is currently in Dubai meeting with Trade Minister Dr Thani bin Ahmed Al Zeyoudi for the third time this year. The pair have announced the launch of negotiations on a Comprehensive Economic Partnership Agreement (CEPA) and discussed strengthening economic ties between New Zealand and the UAE.
"We've said that we'd like to set a target of having a high-quality deal done by the end of this year - but we're not going to let a rush to get it done get in the way of a high-quality deal, it needs to be good for New Zealanders," McClay told AM on Tuesday.
The United Arab Emirates is one of New Zealand's largest markets in the Middle East.
"[There's] a real thirst and hunger here for the high-quality, safe food New Zealand produces," McClay said.
Two-way trade between the countries in 2023 was $1.18 billion, with New Zealand selling more than we buy to UAE with exports just over $1 billion last year.
McClay said if they get a deal in place, he backs the UAE to "double that trade".
The Government has set a target of doubling exports by value within 10 years. McClay said new opportunities in the UAE will open further commercial opportunities that will lift domestic incomes and reduce the cost of living.
"The UAE is a key export destination and hub in the Gulf region, and there are significant opportunities to enhance cooperation across a range of areas, including agriculture and sustainable energy," McClay said.
"A CEPA with the UAE would also complement our ongoing negotiations towards a free trade agreement with the Gulf Cooperation Council [GCC], and I was pleased to advance these discussions during my visit to Saudi Arabia last week and my discussions with Saudi and GCC counterparts."
McClay said he was "gently, cautiously optimistic" that we can take a step forward in work to get a free trade agreement with the GCC.
"If we could crack that, it would be very, very important - but in the meantime, even without a trade deal, there's a lot more that we can sell Saudi Arabia because they too have an interest in what we produce."
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