New Zealand launches trade negotiations with United Arab Emirates

Trade Minister Todd McClay has begun trade negotiations with the UAE. Photo / RNZ, Samuel Rillstone

Minister for Trade Todd McClay announced this morning that New Zealand has begun trade negotiations with the United Arab Emirates.

McClay is currently in the Middle East on a trade mission. He met United Arab Emirates (UAE) Trade Minister Dr Thani bin Ahmed Al Zeyoudi in Dubai, where they announced the launch of negotiations on a Comprehensive Economic Partnership Agreement (CEPA) and discussed strengthening economic ties between New Zealand and the UAE.

“The UAE is an important bilateral partner for New Zealand and today’s launch of negotiations is an exciting step towards growing our significant trade and economic relationship,” McClay said.

Two-way trade with the UAE was $1.13 billion in the year to March 2024. Exports were worth $976 million and imports were worth $153.9m.

This represents 1 per cent of all New Zealand exports and 0.1 per cent of imports. Exports were overwhelmingly weighted towards dairy, which comprised more than half of all exports at $574m. New Zealand’s top imports were plastics, worth $42m, and carpets worth $32m.

The trade talks are something of a consolation prize, the big trade prize in the region being a free trade agreement (FTA) 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. Trade with this bloc is worth $2.96b.

Talks began in 2007 and substantively wrapped up in 2009, but were never finalised due to a moratorium on the Gulf side on new FTAs. Talks finally restarted in 2022.

McClay said this agreement would “complement” the FTA effort with the Gulf Co-operation Council.

“A CEPA with the UAE would also complement our ongoing negotiations towards a free trade agreement with the Gulf Co-operation Council [GCC] and I was pleased to advance these discussions during my visit to Saudi Arabia last week and my discussions with Saudi and GCC counterparts,” McClay said.

McClay said there had been successful exploratory discussions for the deal and public consultation.

“The UAE is a key export destination and hub in the Gulf region, and there are significant opportunities to enhance co-operation across a range of areas, including agriculture and sustainable energy,” McClay 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.