ABU DHABI: UAE President His Highness Sheikh Mohamed bin Zayed Al Nahyan and Gabriel Boric Font, President of the Republic of Chile, today witnessed the signing of the Comprehensive Economic Partnership Agreement (CEPA) between the UAE and Chile. This took place during the official visit of the Chilean President to the UAE.
The agreement aims to stimulate non-oil bilateral trade by eliminating or reducing customs duties, removing trade barriers, and simplifying customs procedures. It also seeks to establish new pathways for investment flows and cooperation while providing a platform for both countries’ private sectors to build partnerships.
The agreement was signed during a ceremony held at Qasr Al Watan in Abu Dhabi by Dr Thani bin Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade, and Alberto van Klaveren, Minister of Foreign Affairs of Chile.
Sheikh Mohamed affirmed that the UAE will continue its steadfast approach in building developmental partnerships around the world to serve mutual interests and provide opportunities for future generations. This stems from the UAE’s firm belief in the importance of enhancing cooperation among nations to ensure a better future for all, characterised by peace, stability, and prosperity.
He stated that the UAE is keen to expand its network of trade and investment partners worldwide through its CEPA programme, which aims to stimulate long-term economic diversification and sustainable growth.
Mutual growth
He noted that the CEPA between the UAE and Chile supports mutual economic growth by providing opportunities for business communities and the private sector to expand on both sides. Additionally, it establishes a vital trade and investment corridor with South America, which holds promising economic potential.
President Boric Font welcomed the signing of the CEPA between the UAE and Chile, describing it as a major milestone in their bilateral relations. He noted that the agreement would boost trade prospects and diversify investment sources, including in the sustainability field.
Boric also highlighted that since their establishment in 1978, relations between the UAE and Chile have exemplified the importance of international cooperation.
Non-oil trade volume between the UAE and Chile reached $306 million in 2023. Both countries aim to triple this figure by the end of 2030, expanding cooperation across priority sectors.
The CEPA between the UAE and Chile is the second of its kind that the UAE has signed with a South American country following a similar agreement with Colombia last April. Launched in September 2021, the UAE’s Comprehensive Economic Partnership Agreement programme is a vital component of the nation’s growth and diversification strategy.
Non-oil trade
Foreign trade remains a cornerstone of the UAE’s economic growth plans, with non-oil trade reaching a record high of $701 billion in 2023, marking a 12.6 per cent increase from 2022 and 34.7 per cent growth compared to 2021.
During the visit, the UAE and Chile Presidents also oversaw the announcement of several memoranda of understanding aimed at enhancing cooperation between the two countries. These agreements cover a range of areas, including food security and agrifood investment; cooperation in investment, information technology, and peaceful space research and activities; and a declaration of intent in the field of mining.
Earlier, an official reception ceremony was held for the visiting Chile President at Qasr Al Watan in Abu Dhabi. Upon the arrival of President Boric’s motorcade, Sheikh Mohamed escorted him to the podium of honour where the national anthems of the UAE and the Republic of Chile were played. A group of honour guards lined up to greet the Chilean President and a 21-gun salute was fired in his honour.
Significant milestone: Ministers, officials
Ministers and officials from the UAE, along with local authority leaders, on Monday emphasised the significance of the CEPA between the UAE and Chile. This agreement marks a pivotal moment in the UAE's strategy to broaden its global partnership network, particularly with Chile being the fourth largest economy in South America. The partnership with Chile heralds a new chapter in UAE's relations with this crucial region on the global economic map, they said.
The officials highlighted that this agreement is a vital step in reinforcing the UAE’s position as a global hub for economy, trade and industry. It aligns with the UAE's goal of enhancing the contribution of various sectors to the GDP, targeting a GDP of Dh3 trillion by the next decade, in accordance with the "We the UAE 2031" vision.
This agreement is expected to forge a strong commercial and investment partnership with Chile, opening new opportunities for companies and investors from both nations. It will also support collaboration in essential sectors like clean energy, environmental sustainability, and food security.
Mohamed bin Hadi Al Hussaini, Minister of State for Financial Affairs, said: "The CEPA between the UAE and Chile represents a significant advancement in our bilateral relations, underlining our commitment to fostering economic growth and international cooperation. Chile’s well-regulated financial markets, supported by strong fiscal policy and liquidity from the Central Bank, offer confidence and clarity to UAE businesses and investors. This agreement is poised to create an optimal environment for cross-border exchange and collaboration."
Suhail Mohamed Al Mazrouei, Minister of Energy and Infrastructure, said: "Chile has become an essential partner in our energy transition plans. This agreement will accelerate our progress in clean and renewable energy technologies, policy best practices, and smart grid development. Chile’s leadership in wind and geothermal power offers an excellent opportunity for deeper engagement as we aim to establish ourselves as champions of renewable energy."
Dr. Sultan bin Ahmad Al Jaber, Minister of Industry and Advanced Technology said: "The agreement with Chile is crucial for our strategy to diversify our economy, enhance industrial capabilities, and boost non-oil exports. Chile’s growing manufacturing sector presents rich opportunities for UAE investors and exporters. This partnership will facilitate industrial development and export facilitation to key markets in the Middle East, Asia and Africa."
Abdulla bin Touq Al Marri, Minister of Economy, said: "Expanding our foreign trade network is central to achieving sustainable economic growth and reaching a national GDP of Dh3 trillion by the next decade. The agreement with Chile is a significant milestone, promoting dynamic trade and investment in sectors like manufacturing, financial services, energy, tourism, and agriculture."
Dr. Amna bint Abdullah Al Dahak, Minister of Climate Change and Environment, said: "This agreement is a critical addition to our foreign trade agenda, reinforcing our commitment to environmental sustainability and food security. Chile’s focus on sustainable finance and climate adaptation strategies will inform and inspire our efforts towards achieving carbon neutrality by 2050."
Mohammed bin Hassan Al Suwaidi, Minister of Investment, said: "The UAE’s programme for comprehensive economic partnerships is opening new avenues for global investment, easing capital flows, and identifying high-potential projects. The agreement with Chile will spur investment in renewable energy, technology, agriculture, and infrastructure, supporting long-term growth for both nations."
Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, said: "As we expand our network of trading partners, we are not only strengthening our position as a global trade hub but also ensuring sustainable growth. The agreement with Chile, the world’s largest copper producer and a key supplier of agricultural products, is set to increase non-oil foreign trade value and boost non-oil exports, contributing to economic diversification and resilience."
Ahmed Ali Al Sayegh, Minister of State, said: "Trade is an essential driver of stability and development. This agreement deepens our trade relations by improving market access, reducing tariffs, and creating new investment opportunities. It secures supply chains and promotes inter-regional cooperation in sectors like energy and logistics."
Khaled Mohamed Balama, Governor of the Central Bank of the UAE, said: "This agreement aligns with our leadership's vision for a resilient, sustainable, and globally open economic system. It aims to enhance economic growth, expand foreign trade, and encourage investment flows, contributing to financial stability and the protection of the global financial system."
Ahmed Abdullah bin Lahej, Director General of the Federal Customs Authority, said: "The agreement builds on robust trade ties, reducing tariffs and eliminating barriers to facilitate smoother exchange of goods and services, reduce costs for businesses, and improve trade facilitation overall."
Abdulla Mohammed Al Basti, Secretary General of the Executive Council of Dubai, said: "This agreement strengthens economic cooperation between the UAE and Chile, providing UAE-based exporters and investors access to substantial opportunities in Chile. It supports joint ventures in key sectors, enhancing industrial growth and economic diversification."
