Japan and the UAE have decided to commence negotiations for an economic partnership agreement between the two nations.
President HH Sheikh Mohamed bin Zayed Al Nahyan expressed optimism that these ties will be further strengthened with the initiation of talks towards a Comprehensive Economic Partnership Agreement (CEPA), which aims to create new avenues for collaboration and support the sustainable economic growth of both nations.
He noted that the agreement would facilitate investment, support innovation, and significantly contribute to economic diversification efforts.
Japanese Prime Minister Fumio Kishida also highlighted the significance of the commencement of CEPA negotiations. In a post on X (the social media platform formerly known as Twitter) he wrote: “I expect that the conclusion of an ambitious, balanced, and comprehensive Economic Partnership Agreement between Japan and the UAE, in addition to the Japan-GCC Free Trade Agreement, whose negotiations will proceed in parallel with the Japan-UAE negotiations, will contribute to the strengthening of economic relations and other fields between the two countries.”
The announcement of the talks aligns with the UAE’s strategy to expand its network of trade partners through the Comprehensive Economic Partnership Agreement programme, initiated in September 2021.
This programme aims to achieve sustainable economic growth by removing trade barriers and improving market access for services, including the reduction or elimination of customs duties.
The UAE is Japan’s top trading partner in the Arab world in terms of exports and imports, receiving 40% of Japan’s exports to Arab countries. Japan is also among the UAE’s top ten global trading partners. In H1 2024, the non-oil trade between the two countries reaached $8.1 billion, while total trade for 2023 stood at $17.3 billion, marking a 17.4% increase compared to 2022.
