NZ-UAE Free Trade Deal Clears Final Hurdle, Unlocks $500B Market for Exports

In a major win for New Zealand exporters, the Comprehensive Economic Partnership Agreement (CEPA) between New Zealand and the United Arab Emirates (UAE) has officially passed into law, clearing the path for a transformative trade relationship with one of the Middle East’s most dynamic markets.

Minister for Agriculture, Trade and Investment Todd McClay hailed the move as a “landmark moment” that will provide substantial commercial advantages for Kiwi producers and businesses eager to expand their global footprint.

“The NZ-UAE CEPA delivers real benefits for New Zealand exporters—lowering costs, increasing access, and securing a stronger presence in the Middle East,” McClay said in a statement. “This is the highest-quality, fastest trade agreement we’ve ever negotiated.”

Immediate Tariff Elimination on 98.5% of Exports

The CEPA will result in the immediate removal of tariffs on 98.5% of New Zealand’s exports to the UAE once the agreement enters into force. That figure is expected to increase to 99% within three years, ensuring nearly universal duty-free access for New Zealand products.

Sectors that stand to benefit include dairy, meat, horticulture, processed food, and beverages, all of which are in high demand in the UAE, a market that imports 90% of its food.

The agreement also improves conditions for service exports and investment, facilitating greater ease of doing business across a wide array of industries.

“UAE consumers actively seek safe, fresh, high-quality products from abroad and are willing to pay premium prices,” McClay noted. “This agreement positions New Zealand exporters to lead in this competitive space.”

Expanding Trade with a Strategic Partner

Bilateral trade between New Zealand and the UAE is currently worth NZ$1.35 billion, but officials expect the CEPA to turbocharge this figure by significantly reducing bureaucratic barriers, diversifying trade flows, and fostering stronger commercial ties.

The UAE, with a $500 billion import market, is not only a regional economic powerhouse but also a gateway to the wider Gulf Cooperation Council (GCC) region, offering potential access to other major markets such as Saudi Arabia, Qatar, and Kuwait.

“Trade agreements are about opening doors and levelling the playing field,” McClay said. “CEPA enhances our competitiveness and makes it easier for Kiwi exporters to get their products to market faster and more profitably.”

Strategic Timing and Government Trade Goals

The legislation’s passage comes at a critical time, as the Government pushes to double the value of New Zealand’s exports within the next 10 years. Expanding access to high-growth markets like the UAE is a key component of this strategy.

The CEPA is also consistent with the Government’s goal of diversifying trade beyond traditional partners, reducing overreliance on any single market and strengthening resilience across the export economy.

“Growing our trade relationships helps boost the economy, lift incomes, and provide the public services Kiwis deserve,” McClay added.

Path to Implementation

While the legislation has now cleared its final domestic hurdle, the agreement still needs to undergo ratification procedures by both parties before it enters into force. Officials on both sides have signaled their intention to complete this process swiftly, aiming for early implementation in 2025.

Once operational, CEPA will provide enhanced legal certainty and long-term predictability for New Zealand businesses operating in the UAE and vice versa.

Broader Implications

The NZ-UAE CEPA is part of a broader diplomatic and economic push by New Zealand to strengthen ties with the Middle East, a region that is rapidly modernizing, investing in sustainability, and diversifying its economy beyond oil.

As the UAE increasingly becomes a hub for innovation, logistics, tourism, and food security, New Zealand is well-positioned to contribute its strengths in agri-tech, renewable energy, and premium food production.

Looking Ahead

With CEPA set to enter into force soon, New Zealand’s exporters are being encouraged to prepare for new opportunities by:

• Exploring regulatory and logistical changes the agreement enables

• Building networks with Emirati buyers and distributors

• Leveraging government and industry trade facilitation support

The passage of the CEPA into law signals not just a stronger economic partnership, but a shared vision for sustainable and mutually beneficial growth between New Zealand and the UAE.