Australia’s mining industry will benefit from a trade deal finalised with the United Arab Emirates this week.
Federal Trade Minister Don Farrell said the UAE was Australia’s largest trade and investment partner in the Middle East, with two-way trade worth $9.9 billion in 2023.
Minister Farrell said the Comprehensive Economic Partnership Agreement provided a gateway for Australian exporters to diversify into the Middle East, a market of around 58 million consumers and a combined GDP of $1.4 trillion.
He said the negotiated package included a framework which would encourage two-way investment, including in the sectors of the Australian economy that underpin the energy transition, such as critical minerals.
“The Australian mining industry will benefit with tariff cuts on exports, including alumina which was valued at $1 billion in 2023.”
Minister Farrell said other Australian exports to the UAE included meat, dairy, oil seeds, seafood, steel, canola seeds, nuts, honey, coal, chickpeas, lentils and higher education.
He said over 99 percent of Australian products would now enter the UAE tariff-free, resulting in estimated tariff savings of $135 million in the first year, rising to $160 million per year once the agreement is fully implemented.
“The agreement will deliver real benefits for Australian farmers and food producers, with estimated tariff savings of $50 million per year for our food and agriculture exports.”
Minister Farrell said the agreement cut Australian import tariffs on UAE produced furniture, copper wire, glass containers and plastic.
“It is estimated that Australian households and businesses will save around $40 million a year.”
He said the deal unlocked new business opportunities, created greater certainty for Australian service providers in the UAE and made it easier for certain skilled professionals to work temporarily in the UAE.
“For sectors such as education, financial services, health and research and development services, 100 percent foreign ownership in the UAE market is guaranteed.”
Minister Farrell said the agreement included commitments on promoting labour rights, on protecting the environment and on sustainable development.
“The trade agreement with the UAE is Australia’s first trade agreement with a dedicated chapter covering First Nations trade. First Nations businesses seeking to export their goods to the UAE will benefit from preferential market access and rules under the agreement.”
