New Zealand–UAE Trade Pact Comes into Force, Unlocking $42m in Tariff Savings

New Zealand’s latest trade agreement, the Comprehensive Economic Partnership Agreement (CEPA) with the United Arab Emirates (UAE), officially entered into force today, marking a significant milestone in the country’s trade strategy. The deal, hailed as New Zealand’s fastest-ever trade negotiation, was completed in just over four months and promises to deliver up to $42 million in tariff savings annually for exporters and the wider economy.

Agriculture, Trade and Investment Minister Todd McClay described the agreement as one of New Zealand’s most ambitious and commercially valuable in terms of goods market access.

“From today, 98.5 per cent of New Zealand’s exports to the UAE will enter duty-free, rising to 99 per cent by the start of 2027. This is one of the best goods market access packages we have ever secured.”

What the Agreement Delivers

The CEPA provides immediate and substantial benefits for some of New Zealand’s highest-value export sectors:

• Dairy ($766 million) – now fully duty-free, boosting competitiveness in a market reliant on imported food.

• Red Meat ($52.5 million) – duty-free entry to a growing market for high-quality protein.

• Apples ($34.9 million) and Kiwifruit ($7.8 million) – horticulture gains preferential access.

• Seafood ($15.5 million) – enhanced opportunities in a region with rising demand for premium seafood.

• Forestry Products ($9.4 million) – new competitiveness in building and manufacturing materials.

• Honey ($5.2 million) – duty-free access for a product already highly sought after in the Middle East.

Collectively, these sectors will see tariffs eliminated from today, significantly improving margins for producers.

Why the UAE Matters

The UAE is already one of New Zealand’s most important trade partners in the Middle East, with two-way trade valued at $1.44 billion annually. The agreement strengthens access to a market that imports 90 per cent of its food and is rapidly diversifying its economy beyond oil.

For New Zealand, this translates to long-term export growth, diversification of markets, and stronger connections into a wider Gulf economy estimated at US$500 billion.

Beyond Goods: Services, Investment, and Digital Trade

While the immediate benefits focus on agricultural and goods exports, the CEPA also establishes frameworks for:

• Two-way investment flows, opening opportunities for capital partnerships in infrastructure, food production, logistics, and technology.

• Digital trade provisions, reducing barriers for cross-border e-commerce, services, and data flows.

• Professional services cooperation, creating pathways for expertise exchange in areas like education, tourism, and financial services.

Minister McClay emphasised that these wider opportunities will help create jobs, boost incomes, and expand New Zealand’s economic footprint in a strategically important region.

Strategic Significance

The CEPA is more than a trade agreement—it represents a deepening of diplomatic and economic ties with a key Gulf state. New Zealand has long sought greater integration into Middle Eastern markets, and this agreement builds on earlier efforts to strengthen ties with Gulf Cooperation Council (GCC) members.

The deal also supports the Government’s broader trade goal of doubling the value of New Zealand’s exports within the next decade, part of its long-term economic growth strategy.

Looking Ahead

By phasing in near-universal tariff elimination by 2027, the CEPA is expected to transform the commercial relationship between New Zealand and the UAE. Exporters across multiple sectors now have a significant platform to expand market share in one of the world’s most dynamic economies.

As McClay concluded:

“The CEPA strengthens our relationship with a key Gulf partner and takes us a step closer to the Government’s goal of doubling the value of New Zealand’s exports in 10 years.”