November 11, 2024

Australia, UAE CEPA agreement expected to push investment in agriculture supply chains

The Australia-UAE Comprehensive Economic Partnership Agreement (CEPA) has been signed, with Australian minister for agriculture, fisheries and forestry, Julie Collins, signing the accompanying memorandum of understanding (MoU) on Investment Cooperation in Food and Agriculture.   

According to Collins, the MoU will promote investment in supply chains for agriculture and food exports and projects that enable producers and processors to diversify and create value-added products.   

"It further enhances market access and diversification opportunities for our producers to a lucrative market, not only in the UAE but across the whole of the Middle East, as the UAE is an important trading hub for the region," she said. 

Under the MoU, Australia and the United Arab Emirates will encourage and facilitate investment for projects that support sustainable agriculture and food production through best practice land management, greenhouse gas emissions reduction, and the development of climate-smart technologies and practices. 

"I am proud to say that it is the first FTA to contain a standalone chapter on sustainable agriculture and food systems,recognising agriculture's essential role in ensuring food security, driving climate resilience, emissions reductions and other environmental outcomes," Collins said. "It also ensures that sustainability measures are not applied with a "one-size fits all approach" and do not create barriers to trade for our world class agricultural exports."  

CEPA is a major landmark in trade relations between Australia and the UAE, eliminating tariffs on over 99% of Australia's exports by value, including significant agricultural goods such as horticulture and honey. Tariff savings are estimated to be worth over A$50mn annually to Australian agriculture and food exporters. 

- Fruitnet