UAE-Turkey non-oil trade to hit $40 billion in five years under new CEPA deal

Abu Dhabi: The United Arab Emirates and Turkey signed the Comprehensive Economic Partnership Agreement (CEPA) on Friday.

During the virtual summit, the signing ceremony was witnessed by President His Highness Sheikh Mohamed bin Zayed Al Nahyan and President of the Republic of Turkey Recep Tayyip Erdogan.

“The signing of CEPA reflects a significant development in bilateral relations in recent years,” commented President Sheikh Mohamed. In 2022, the total non-oil trade between the UAE and Turkey will reach US$19 billion, a 40% increase from 2021 and a 112% increase from 2020. This makes Turkey the fastest growing country among the UAE’s top 10 trading partners.

Sheikh Mohammed added: “The agreement not only aims to stimulate trade, investment and economic growth, but also establishes a true development partnership, builds common interests and strengthens the increasingly strong strategic relationship between our two countries.”

The UAE-Turkey CEPA aims to achieve mutual benefit and stimulate long-term, sustainable and comprehensive economic growth between the two countries by eliminating or reducing tariffs on 82% of goods and products, accounting for more than 93% of non-oil products. In addition, the agreement improves market access to Turkey for UAE exporters, including key industries such as construction, metals and their products, polymers and other manufactured goods.

President Recep Tayyip said, “Our efforts stem from our shared history, culture and traditional values, which not only contribute to our bilateral economic relations, but also greatly contribute to the prosperity of our region and the world, Well-being and stability.” Erdogan. “There is no doubt that CEPA, signed today with its powerful tools such as the liberalization of bilateral goods, services and trade, with a special emphasis on small and medium-sized enterprises; ease of work for investors; and first-class rules for intellectual property rights, etc., will be a key tool in promoting trade. and investment triggers,”

The agreement is expected to help increase non-oil bilateral trade to $40 billion a year within five years, while also creating 25,000 new jobs by 2031. In addition, the agreement is expected to increase UAE exports to Turkey by 21.7%. Non-oil exports to Turkey will reach $5.6 billion in 2022, a 109% increase from 2021, while re-exports from the UAE to the world will increase in value by 87% %, reaching $2.3 billion by 2022.