UAE partnership welcomed, touted “important emerging market” for Australian wine

Negotiations on the Australia-United Arab Emirates Comprehensive Economic Partnership Agreement concluded yesterday, with the outcome welcomed by the wine industry.

This trade agreement provides a gateway for Australian exporters to diversify into the Middle East, a market of around 58 million consumers and a combined GDP of AU$1.4 trillion.

Australia is currently the second-largest exporter of wine to the UAE by volume, according to IWSR data. The UAE represents an important emerging market for Australian wine, serving as a key hub for international trade.

“The UAE is a vital market for Australian wine, and we are excited about the continued growth opportunities this agreement brings,” said Lee McLean, chief executive of Australian Grape & Wine. “The Australia-UAE CEPA offers a platform for ongoing dialogue and cooperation on technical matters to further strengthen trade relations between our countries.

“Australian Grape & Wine commends the Australian Government for achieving this milestone and extends its thanks to Ministers Farrell, Watt, and Collins, along with their departments, for their dedicated efforts in securing this agreement. We look forward to reviewing the full details in due course.”

Two-way investment between Australia and the UAE totalled $20.6 billion in 2023, and this is expected to increase significantly.

The new trade agreement is a “great deal” for Australian exporters, according to a statement from the Minister for Trade and Tourism. Over 99 percent of Australian products will 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.

“Under this trade agreement, Aussie exports are expected to increase by $678 million per year, but this deal means more for Australia than just numbers,” said the Minister for Trade and Tourism, Don Farrell.

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.

Australia and the UAE are now both working to formalise the legal treaty text in preparation for signing later this year.

Are you a Daily Wine News subscriber? If not, click here to join our mailing list. It’s free!

_{Images are for reference only.Images and contents gathered automatic from google or 3rd party sources.All rights on the images and contents are with their legal original owners.}