Australia-UAE Comprehensive Economic Partnership Agreement (CEPA)

Australia and the United Arab Emirates (UAE) have officially brought the Comprehensive Economic Partnership Agreement (CEPA) into force on 1 October 2025, marking a milestone in trade relations.

For Australian exporters, the agreement is particularly significant. Once fully implemented, over 99% of Australian exports to the UAE will be tariff-free, reducing costs and boosting competitiveness across key industries, including agriculture, manufacturing, minerals & non-agriculture industries.

The UAE is already Australia’s largest trading partner in the Middle East, with two-way trade valued over $12.3 billion in 2024. Independent modelling suggests CEPA could add an additional $678 million annually to Australian exports to the UAE market.

Beyond tariffs, the deal also opens the door to greater investment flows, particularly in renewable energy, digital infrastructure, food production, and critical minerals, areas directly tied to Australia’s supply chain growth. For many goods, tariff eliminations take effect immediately, while others will be phased out over three to five years.

Full details of the agreement and its key benefits to Australia can be found on the Department of Foreign Affairs and Trade (DFAT) website.

For logistics industry, CEPA represents:

• Increased shipping volumes in premium food, wine, dairy, and resource commodities.

• Simplified customs procedures, thanks to rules designed to minimise non-tariff barriers.

• Greater certainty for exporters, with long-term tariff reductions locked in.

The signing of CEPA aligns with the 50th anniversary of diplomatic relations between Australia and the UAE, marking both a historic milestone and the elevation of the relationship to a Strategic Partnership.

Source: Content adapted from Department of Foreign Affairs and Trade, licensed under CC BY 4.0.

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