“The UAE is a key export destination and hub in the Gulf region. In the year to June 2024, two-way trade was valued at $1.3 billion. The UAE is one of our largest markets in the Middle East, and a top 20 export market overall.
“New Zealand dairy exports to the UAE amounted to $718 million, industrial products $237m, red meat $46m, horticulture $44m, and tourism $31m,” he said.
The UAE deal has been seen as a stepping stone on the way to a far more significant agreement with the Gulf Co-operation Council of Saudi Arabia, United Arab Emirates, Qatar, Kuwait, Bahrain and Oman.
For more than a decade, New Zealand has sought a trade deal with the Gulf Co-operation Council (GCC). Trade with this bloc is worth $2.96b.
Al Zeyoud said this morning that negotiations with the Council and the UAE had proceeded simultaneously and this deal would actually accelerate the GCC deal.
“The conclusion of the bilateral [agreement] speeds up the GCC track. So I’m sure this is going to move the GCC track much faster and they will complement each other,” he said.
Labour welcomed the deal. Labour trade spokesperson Damien O’Connor said Labour “began exploratory trade talks on this agreement in September last year and represented a deepening of bilateral relations between our two countries”.
“The UAE is also a hub for New Zealand Inc operations into the region and a key component of New Zealand’s air connectivity to the Middle East and beyond,” O’Connor said.
“An agreement with the UAE and Gulf Cooperation Council was the next step following the UK and EU free trade agreements Labour concluded in government, and conclusion by the National Government is another great step forward in trade opportunities for our exporters,” he said.
Federated Farmers welcomed the deal noting the UAE was one of New Zealand’s top 20 export markets.
“This agreement will take millions of dollars that would have been charged in tariffs and pump them directly into our rural communities,” Federated Farmers president Wayne Langford said.
“It’s great to see the Government delivering on their commitment to open up new markets, reduce tariffs, and give our exporters options,” Langford said.
The Council of Trade Unions was a dissenting voice.
CTU President Richard Wagstaff said the deal was “not a cause for celebration”.
“There is no evidence of a deal with no enforceable rights for workers, protections against forced labour or modern slavery. Nothing has been noted abut enhancing the rights of women in the UAE,” Wagstaff said.
“The International Trade Union Confederation states the UAE has one of the worst records for absolute denial of fundamental workers’ rights. No Independent Trade Unions are allowed under UAE law, nor is there any right to strike. One thing we do know is that this deal does nothing to help tackle climate change.”
“We will be working with the Government, parliament, and allies to highlight the problems that this trade deal will create. Migrant workers in the UAE make up 88 percent of the overall workforce, yet they have little or no protections at work. This agreement does nothing to protect them<” he said.
Thomas Coughlan is Deputy Political Editor and covers politics from Parliament. He has worked for the Herald since 2021 and has worked in the press gallery since 2018.
