UAE and Colombia complete phase one of Comprehensive Economic Partnership Agreement

H.E. Al Zeyoudi: We are working jointly to ensure that both economies and their business communities get the maximum benefit out of this partnership.

The UAE and Colombia announced, in a joint statement, that they have completed phase one of their Comprehensive Economic Partnership Agreement (CEPA), which will help strengthen the trade and investment relations between the two countries. The Ministry of Economy explained that joint efforts are continuing in order to finalize the agreement’s draft, aimed at serving the shared objectives of the two countries. The agreement is expected to be finalized in three months after the final stage negotiations, which will continue over the upcoming weeks.

H.E. Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, said:  “Colombia is the third largest economy in South America, a key coffee producer and a potential gateway for UAE-based companies to leverage promising economic opportunities in the region. The UAE-Colombia CEPA will give a major boost to businesses in both countries. This agreement is the first of its kind within the context of economic collaboration between the GCC and Latin America. The UAE and Colombia are working side by side to finalize this agreement, by agreeing on a gradual approach to ensure expedited economic benefits. We look forward to optimally leveraging this partnership to bolster the two economies and contribute to the sustainable growth of the global economy.”

H.E. Al Zeyoudi added: “The agreement is part of the UAE’s strategy to establish economic agreements with promising global economies and is a key driver of its efforts to enhance its openness to the world, to double its GDP in the coming decade, following the launch of the Principles and the Projects of the 50. Our efforts to build a competitive and flexible economy that is based on knowledge and innovation continue. The establishment of stronger trade and investment partnerships with key partners from all over the world is a key pillar to this ambitious national strategy.”

The UAE-Colombia relations have seen significant growth in the past period, crowned by the visit of Ivan Duque Marquez, President of Colombia, to the UAE in November 2021, which included a meeting with His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai. During the meeting, the two sides reiterated aspirations to promote the existing partnership to higher levels.

The UAE is the main trading partner of Colombia in the Arab world, with their trade exchange accounting for 40 per cent of Colombia’s trade with the region in 2020. The UAE-Colombia non-oil trade was valued at AED 991 million last year. Once the CEPA is signed, the two sides expect this figure to increase three-fold in the years to come.

Under the terms of the CEPA, the two countries will also reduce or fully eliminate customs tariffs on a wide range of goods, increase access to their markets, encourage mutual investments, create job opportunities and increase the scope of their cooperation in priority sectors, including hospitality, tourism, infrastructure, agriculture and food production. Phase one of the agreement includes key areas, including exchange of goods and services, customs procedures, rules of origin and others.

The UAE launched the CEPA program in September 2021 as part of the first set of its ‘Projects of the 50’. These agreements target the expansion of trade and investment partnerships with key international markets, increase trade, and drive the growth of national exports, thus contributing to the achievement of the national goal to accomplish two-fold GDP growth in the next decade. The UAE signed the first CEPA with India this year, and is moving forward with the expansion of partnerships with Africa, Asia, and Latin America.