UAE–Chile CEPA trade deal takes effect, aims to lift flows past $500 million

Dubai: The Comprehensive Economic Partnership Agreement between the UAE and Chile has formally entered into force, setting the stage for a deeper trade and investment relationship between the two countries. Officials described the deal as a strategic milestone that will open access to new markets, strengthen supply chains and create a wider range of commercial opportunities across high-growth sectors.

In 2024, the UAE’s non-oil foreign trade with Chile reached $270 million. That momentum carried into the first half of 2025, with volumes rising 7.1% year-on-year to $153 million. With the agreement now active, bilateral trade is projected to exceed $500 million within five years as both sides benefit from lower barriers and expanded sectoral cooperation.

“The implementation of the UAE-Chile CEPA marks a significant milestone in our economic relations, paving the way for enhanced collaboration and investment opportunities in vital sectors such as renewable energy, agriculture, tourism, and infrastructure,” said Dr Thani bin Ahmed Al Zeyoudi, Minister of Foreign Trade. He added that the deal reinforces the UAE’s commitment to open, rules-based trade.

Chile’s economic strengths draw investor interest

Chile, with a GDP exceeding $300 billion, offers opportunities across manufacturing, financial services, energy, tourism and agriculture. Its position as a leading global producer of copper and lithium has attracted growing interest from UAE institutional investors seeking diversification and access to future-facing sectors.

Existing links have already expanded in recent years. Abu Dhabi-based ADQ acquired Verfrut, one of Chile’s major fruit exporters, while ADIA invested in MUT, the country’s first large-scale urban market project. The CEPA is expected to support further two-way investment flows by providing clearer regulatory pathways and improved market access for both sides.

Strengthening supply chain connectivity

Beyond goods, the agreement covers a wide basket of services, including logistics, aviation, tourism and maritime activity. The UAE’s position as a global trade hub is expected to play a central role in linking Chilean exporters with markets across Africa, Europe and Asia. Officials say this expansion of services trade will support businesses looking to diversify their routes and reach new customers.

Infrastructure is another area marked for closer collaboration. The deal aims to unlock opportunities in ports, transport networks and storage facilities, areas that can enhance the UAE’s role in global supply chains while also supporting Chile’s export-driven sectors.

Agriculture forms a significant part of Chile’s export base, and the CEPA includes mechanisms to increase cooperation in this area. UAE officials expect the agreement to support the country’s food security strategy through closer collaboration with a stable agricultural producer. Expanded trade in produce, agri-tech cooperation and joint logistics efforts are expected to follow.

The UAE–Chile CEPA fits into the country’s broader trade agenda, which targets $1 trillion in total trade value by 2031 and aims to double the size of the economy to more than $800 billion. Since its launch in 2021, the CEPA programme has concluded agreements with 32 countries, opening access to markets representing nearly a quarter of the world’s population.