United Arab Emirates-Turkey Agreement CEPA

United Arab Emirates - Turkey Comprehensive Economic Partnership Agreement (CEPA)

The signing of the Comprehensive Economic Partnership Agreement (CEPA) between the United Arab Emirates (UAE) and Turkey marks a historic milestone in the economic relationship between the two countries. With a long history of strong bilateral relations, the UAE and Turkey aim to further deepen their existing trade and investment ties through this agreement, creating new opportunities for businesses and promoting sustainable economic growth.

For the UAE, this agreement is a significant part of its strategy to diversify its economic partnerships and leverage the dynamic potential of the Turkish market. CEPA covers a wide range of sectors, including trade in goods and services, investment, and intellectual property, and is expected to increase trade, investment, and business opportunities in both countries. It will also foster collaboration in strategic areas such as technology, tourism, healthcare, and renewable energy, contributing significantly to the growth and development goals of both the UAE and Turkey.

The UAE has long viewed trade as a strategic tool to accelerate development, attract investment, and enhance prosperity. In line with this vision, the country's new economic agenda focuses on revitalizing global trade flows and strengthening supply chains. As a result of this approach, the UAE recorded a record-breaking non-oil foreign trade of over AED 2.2 trillion in 2022. Turkey, with its shared values and a common vision for the future, has been a key partner in achieving these goals.

The two countries have complementary economies: the UAE is a trade and investment hub in the Middle East, while Turkey serves as a strategic bridge between Europe and Asia. This complementary structure is also reflected in their bilateral trade figures. In 2022, the non-oil trade volume between the two countries reached $18.9 billion, a record increase of 40% compared to the previous year. This was the highest growth rate among the UAE's top 10 trading partners. The UAE's non-oil exports to Turkey saw an extraordinary increase of 109% in 2022, reaching $5.6 billion. These figures are the clearest indication of the robust economic ties between the two nations.

In conclusion, the CEPA between the UAE and Turkey represents much more than an economic partnership. This agreement is a symbol of the determination of both countries to stand together against common challenges and build a more prosperous future.

A Strategic Partnership for the Future: UAE and Turkey

The United Arab Emirates and Turkey are building a determined and multifaceted partnership that will endure the challenges not only of today but also of the future. Both countries are committed to deepening their cooperation with a vision for a region focused on prosperity and stability. This unwavering commitment forms the basis for the steps to be taken towards achieving common goals.

Key Opportunities and Advantages Offered by the Agreement

The UAE-Turkey CEPA leverages the strong economies of both countries to usher in a transformative era of progress and prosperity for their people. Some of the key opportunities the agreement offers for entrepreneurs, businesses, and investors include:

• Market Access for the Service Sector: The agreement guarantees that UAE service companies can access the Turkish market under fair and transparent conditions. It presents significant opportunities for UAE companies in key sectors such as finance, distribution, telecommunications, education, healthcare, and tourism.
• Removal of Barriers to Trade in Goods: CEPA facilitates easier and more cost-effective entry for UAE exporters into the Turkish market by reducing customs duties, simplifying procedures, and modernizing trade rules. This enhances the competitiveness of exporters and benefits consumers.
• Strengthening the Digital Economy: The agreement shapes the rules of digital trade by protecting online consumers, facilitating data flows, and safeguarding intellectual property rights. This encourages investment in new technologies and accelerates digital transformation.
• Collaboration on Global Challenges: CEPA establishes not just an economic but also a strategic partnership between the two countries. It aims to produce joint solutions to common problems by promoting cooperation in areas like food security, climate change, renewable energy, and technology development.
• Growth Opportunities for SMEs: Small and Medium-sized Enterprises (SMEs), the backbone of the UAE economy, will gain access to exciting opportunities in the Turkish market through this agreement. New customers, collaboration possibilities, and networks will enable UAE-based SMEs to grow confidently and compete internationally.
• Duty-Free Export Advantages: Many goods of UAE origin, such as aluminum, heavy machinery, ceramics, polyethylene, and other petrochemical products, will be able to enter the Turkish market duty-free or with reduced tariffs under the agreement.

General Objectives of the Agreement

The CEPA signed with Turkey aims to reduce barriers to UAE exports, protect the UAE's interests in global competition, and strengthen the private sector by promoting fair trade regulations. With this agreement, it is aimed for UAE businesses to access the Turkish market more efficiently and increase their competitiveness.

Increasing Market Access for Goods

• The agreement provides UAE exporters with greater access to the Turkish market through the elimination or reduction of tariffs on products covering 93% of the value of non-oil trade.
• It establishes fair and transparent rules for import licensing procedures.
• It prevents the use of export subsidies to ensure fair competition for UAE products.
• It establishes a consultation mechanism to eliminate technical barriers to trade.

Determination of Rules of Origin

The agreement clearly defines the criteria that products must meet to benefit from preferential customs tariffs.

• Preferential rules of origin regulate which products can benefit from customs duty reductions.
• These rules cover both goods produced entirely in the UAE and goods that have been substantially transformed using imported inputs.
• Goods produced in free zones that meet the rules of origin criteria can also benefit from preferential treatment under this agreement.

United Arab Emirates Turkey Agreement CEPA