Australian Grape & Wine welcomes the conclusion of negotiations on the Australia-UAE Comprehensive Economic Partnership Agreement (CEPA).
Australia is currently the second-largest exporter of wine to the UAE by volume, according to IWSR data. The UAE represents an important emerging market for Australian wine, serving as a key hub for international trade.
The trade agreement provides a gateway for Australian exporters to diversify into the Middle East, a market of around 58 million consumers and a combined GDP of A$1.4trn.
Two-way investment between Australia and the UAE totalled $20.6bn in 2023, and this is expected to increase significantly.
The new trade agreement means that over 99 per cent of Australian products will enter the UAE tariff free, resulting in estimated tariff savings of $135m in the first year, rising to $160m per year once the agreement is fully implemented.
Lee McLean, Chief Executive of Australian Grape & Wine, said: “The UAE is a vital market for Australian wine, and we are excited about the continued growth opportunities this agreement brings.
“The Australia-UAE CEPA offers a platform for ongoing dialogue and cooperation on technical matters to further strengthen trade relations between our countries.
“Australian Grape & Wine commends the Australian Government for achieving this milestone and extends its thanks to Ministers Farrell, Watt, and Collins, along with their departments, for their dedicated efforts in securing this agreement. We look forward to reviewing the full details in due course.”
The Minister for Trade and Tourism, Don Farrell said of the deal:”We are a trading nation, and the Albanese Government is delivering on its commitment to open up new opportunities for our exporters, farmers, producers and businesses to diversify their markets.
“The UAE has some of the largest Sovereign Wealth Funds in the world. A trade agreement with the UAE will facilitate investment, which is important to achieving the Albanese Government’s ambition of becoming a renewable energy superpower.
“Under this trade agreement, Aussie exports are expected to increase by $678m per year, but this deal means more for Australia than just numbers.
“More trade means more higher-paying jobs, more opportunities for our businesses, greater investment to build things here in Australia, and cheaper bills for Australian households.”