The UAE and Turkey have signed a free trade agreement to strengthen their economic relationship, exempting most customs duties on goods exchanged between the two countries. The agreement was signed at a ceremony in Abu Dhabi in the presence of Emirati President, Sheikh Mohamed bin Zayed Al Nahyan, and Turkish Minister of Trade, Mehmet Mus.
A comprehensive economic partnership agreement
This agreement marks an important milestone for the United Arab Emirates and Turkey seeking to strengthen their economic relationship. Indeed, both countries have expressed their desire to expand their economic and trade cooperation in various sectors, such as technology, tourism, and cultural exchanges.
The free trade agreement between the UAE and Turkey is a comprehensive economic partnership agreement aimed at reducing barriers to trade between the two countries. According to the Emirati news agency WAM, the agreement provides for exemption or reduction of customs duties on 93% of goods exchanged between the two countries, excluding hydrocarbons.
Emirati President Sheikh Mohamed bin Zayed Al Nahyan stated,
“I attended with Turkish President Recep Tayyip Erdogan, via video conference, the signing of a comprehensive economic partnership agreement between the UAE and Turkey. This is an important milestone aimed at strengthening economic and trade relations.”
Constantly increasing trade exchanges
Trade between the United Arab Emirates and Turkey has been steadily increasing in recent years. In 2022, trade between the two countries, excluding oil, reached $19 billion (€17.9 billion), a 40% increase compared to the previous year and 112% compared to 2020. The goal is to increase these exchanges to $40 billion (about €37.7 billion) per year within five years and create 25,000 jobs by 2031, according to WAM.
This agreement will increase their trade volume. Both countries have expressed their desire to expand their economic and trade cooperation in various sectors, which can only strengthen their relationship in the future.
Turkey and the UAE had already concluded 13 major cooperation agreements
In February 2022, the Turkish and Emirati governments signed thirteen cooperation agreements during Turkish President Recep Tayyip Erdogan’s official visit to the United Arab Emirates. These agreements cover various areas such as health, defense industry, culture, advanced technologies, agriculture, transportation, youth, disaster and emergency management, meteorology, media and communications, and archives.
Among the agreements signed were a memorandum of understanding on cooperation in the field of health and medical sciences, a protocol of alliance on action against climate change, and another memorandum of understanding on cooperation in industries and advanced technologies. Regarding culture and tourism, the two countries also signed a memorandum of understanding on cultural cooperation.
Turkish and Emirati officials had also signed a joint ministerial statement for the launch of negotiations on a comprehensive economic partnership agreement. This demonstrated that both countries wanted to strengthen their economic and trade cooperation.
These agreements had illustrated the willingness of Turkey and the UAE to strengthen their strategic partnership, both politically and economically as well as culturally. The signing of these agreements marked an important milestone in relations between the two countries and paved the way for new cooperation opportunities in various key areas.