Australia secures trade deal with UAE, opening doors for produce exporters

AUSTRALIA – The Australian government has successfully concluded negotiations on a new trade agreement with the United Arab Emirates (UAE), marking a significant step for Australian exporters.

The Australia-UAE Comprehensive Economic Partnership Agreement will allow over 99% of Australian products to enter the UAE tariff-free, delivering an estimated AUS 135 million (USD 91.46 million) in tariff savings in the first year, with the number expected to rise to AUS 160 million (USD 108.4 million) annually.

This move is anticipated to bolster Australian agricultural exports, particularly benefitting vegetable producers.

In 2023, Australia exported almost 40,000 tonnes of vegetables to the UAE, valued at AUS 34 million (USD 23.04 million).

This included 33,000 tonnes of carrots, 4,200 tonnes of onions, and nearly 2,000 tonnes of potatoes, making the UAE the second-largest export destination by value and the largest by volume for Australian vegetables.

The tariff relief will translate to about AUS 50 million in savings for the agricultural sector, according to government projections.

The agreement goes beyond numbers, as it includes a chapter focused on First Nations trade. This unique aspect of the deal is designed to provide First Nations businesses with preferential access to the UAE market, creating opportunities for Indigenous entrepreneurs in Australia to expand their reach.

“The UAE is an emerging market for a range of horticultural exports, and industry looks forward to continuing to expand our trade under the new agreement,” said Claire McClelland, Chief Executive of the Australian Fresh Produce Alliance (AFPA).

She highlighted that the removal of trade barriers would help ensure the long-term sustainability of the agriculture sector while also generating employment.

The deal has received widespread support from industry bodies such as Ausveg, which called it an important development for Australian vegetable producers.

“The UAE is a key and valued long-term trading partner for the Australian vegetable industry,” said Michael Coote, Ausveg CEO.

He noted that the agreement provides Australian exporters with the opportunity to trade competitively, as they will continue to enjoy tariff-free access for most fresh vegetables.

Minister for Trade and Tourism Don Farrell said the agreement reflects Australia’s commitment to diversifying its markets and creating more opportunities for exporters.

“This deal means more for Australia than just numbers,” said Farrell, emphasizing that the partnership with the UAE opens up new business opportunities and provides greater certainty for Australian service providers in the region.

The UAE’s strategic location as a re-export hub to other Middle Eastern countries and its reliance on imported fresh produce—over 3 million metric tons of vegetables and fruits annually—makes it a crucial market for Australian agriculture.

Additionally, the country’s vibrant tourism sector fuels a steady demand for high-quality produce, further enhancing the potential for Australian exports.

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Australia secures trade deal with UAE, opening doors for produce exporters

AUSTRALIA – The Australian government has successfully concluded negotiations on a new trade agreement with the United Arab Emirates (UAE), marking a significant step for Australian exporters.

The Australia-UAE Comprehensive Economic Partnership Agreement will allow over 99% of Australian products to enter the UAE tariff-free, delivering an estimated AUS 135 million (USD 91.46 million) in tariff savings in the first year, with the number expected to rise to AUS 160 million (USD 108.4 million) annually.

This move is anticipated to bolster Australian agricultural exports, particularly benefitting vegetable producers.

In 2023, Australia exported almost 40,000 tonnes of vegetables to the UAE, valued at AUS 34 million (USD 23.04 million).

This included 33,000 tonnes of carrots, 4,200 tonnes of onions, and nearly 2,000 tonnes of potatoes, making the UAE the second-largest export destination by value and the largest by volume for Australian vegetables.

The tariff relief will translate to about AUS 50 million in savings for the agricultural sector, according to government projections.

The agreement goes beyond numbers, as it includes a chapter focused on First Nations trade. This unique aspect of the deal is designed to provide First Nations businesses with preferential access to the UAE market, creating opportunities for Indigenous entrepreneurs in Australia to expand their reach.

“The UAE is an emerging market for a range of horticultural exports, and industry looks forward to continuing to expand our trade under the new agreement,” said Claire McClelland, Chief Executive of the Australian Fresh Produce Alliance (AFPA).

She highlighted that the removal of trade barriers would help ensure the long-term sustainability of the agriculture sector while also generating employment.

The deal has received widespread support from industry bodies such as Ausveg, which called it an important development for Australian vegetable producers.

“The UAE is a key and valued long-term trading partner for the Australian vegetable industry,” said Michael Coote, Ausveg CEO.

He noted that the agreement provides Australian exporters with the opportunity to trade competitively, as they will continue to enjoy tariff-free access for most fresh vegetables.

Minister for Trade and Tourism Don Farrell said the agreement reflects Australia’s commitment to diversifying its markets and creating more opportunities for exporters.

“This deal means more for Australia than just numbers,” said Farrell, emphasizing that the partnership with the UAE opens up new business opportunities and provides greater certainty for Australian service providers in the region.

The UAE’s strategic location as a re-export hub to other Middle Eastern countries and its reliance on imported fresh produce—over 3 million metric tons of vegetables and fruits annually—makes it a crucial market for Australian agriculture.

Additionally, the country’s vibrant tourism sector fuels a steady demand for high-quality produce, further enhancing the potential for Australian exports.

Sign up to receive our email newsletters with the latest news updates and insights from Africa and the World HERE.