UAE FTA Network: Key Agreements in Place, Under Negotiation

By Qian Zhou

The United Arab Emirates (UAE) has a comprehensive free trade agreement (FTA) framework that includes both bilateral and multilateral agreements.

General Agreement on Tariffs and Trade (GATT)

The UAE became a contracting party to the General Agreement on Tariffs and Trade (GATT) in 1994, and subsequently became a member of the World Trade Organization (WTO) in April of 1996.

The accession to the WTO offers several advantages to the country such as low tariffs on UAE exports and protection of local markets from product dumping. Commitments from the UAE include the need to update local legislation and laws in many fields such as intellectual property rights, trade and services, as well as conformation to highest international product standards with an aim to alleviate challenges to the development and diversification of national exports, thereby facilitating national companies to take a major role in international trade.

UAE as part of GCC

As part of the Gulf Cooperation Council (GCC), the UAE has strong economic ties with Saudi Arabia, Kuwait, Bahrain, and Oman, meaning the UAE shares a common market and a customs union with these nations.

Beyond that, the UAE, within the GCC framework, has signed GCC FTA with many countries including New Zealand, Singapore, and European Free Trade Association (EFTA) countries (Iceland, Liechtenstein, Norway, and Switzerland).

Under the Greater Arab Free Trade Area Agreement (GAFTA), the UAE has free trade access to Saudi Arabia, Kuwait, Bahrain, Qatar, Oman, Jordan, Egypt, Iraq, Lebanon, Morocco, Tunisia, Palestine, Syria, Libya, and Yemen.

Negotiations are currently underway between the GCC and several countries and trade groups, including the European Union, Japan, China, Korea, Australia, Pakistan, India, Turkey, and the Mercosur member countries (Argentina, Brazil, Paraguay and Uruguay).

GCC’s FTA framework are as follows:

1. Free Trade Agreement between the Gulf Cooperation Council (GCC) and the European Free Trade Association (EFTA) States
2. GCC-Singapore Free Trade Agreement (GSFTA)
3. The Arab Framework Agreement of Liberalization of Trade in Services Among Arab Countries
4. Agreement on the Establishment of Free Trade Area between the UAE Government and the Sudanese Government
5. Agreement on the Establishment of Free Trade Area between the UAE Government and the Iraqi Government
6. Agreement on the Establishment of Free Trade Area between the UAE Government and the Lebanese Government
7. Agreement on the Establishment of Free Trade Area between the UAE Government and the Moroccan Government
8. Agreement on the Malaysian Committee for Trade Cooperation
9. Agreement to Facilitate and Develop Trade Among Arab Countries (by the Arab League)
10. The Declaration of Greater Arab Free Trade Area (GAFTA) (In accordance with the Agreement for Facilitation and Promotion of Trade among Member Countries – the Arab League)
11. Greater Arab Free Trade Area (GAFTA) Agreement
12. Agreement on Trade in Services among the Arab Countries

UAE’s bilateral CEPAs

The UAE started aggressively pursuing bilateral Comprehensive Economic Partnership Agreements (CEPAs) since 2021.

The UAE signed its first bilateral trade agreement with India on February 18, 2022. In 2023, the UAE’s CEPAs experienced exponential growth, with three deals implemented, two more signed, and four agreed upon.

The UAE and New Zealand commenced negotiations on a CEPA on May 6, 2024.

As of July 2024, the UAE has six CEPAs in force, including:

• UAE-India CEPA
• UAE-Israel CEPA
• UAE-Indonesia CEPA
• UAE-Türkiye CEPA
• UAE-Cambodia CEPA
• UAE-Georgia CEPA

Benefits of CEPAs

• Enhanced market access
• Lower or eliminated tariffs
• Simpler customs procedures
• Clear and transparent rules
• Rules-based competition

Comprehensive Economic Partnership Agreements timeline

Others

The United States began negotiating an FTA with the UAE in March 2005, though the process was suspended in early 2007. No further FTA negotiations have taken place.

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