(MENAFN- Khaleej Times)
The UAE and Japan have launched talks to seal a Comprehensive Economic Partnership Agreement (Cepa) that will pave the way for new avenues of collaboration and bolster the economic growth of the two countries, President sheikh Mohamed announced on Wednesday.
The decision to move into this landmark trade pact is anchored on a history of strategic cooperation across various fields. The UAE President said the start of Cepa negotiations reflects "a mutual commitment to elevate their relationship to new levels of cooperation".
"By facilitating investment and supporting innovation, the agreement will play an important role in the nation's economic diversification efforts, while also providing more opportunities for collaboration between the business communities of both countries," he added.
In a post on social media platform X, Japanese Prime Minister Fumio Kishida highlighted the significance of Cepa talks: "I expect that the conclusion of an ambitious, balanced, and comprehensive Economic Partnership Agreement between Japan and the UAE, in addition to the Japan-GCC Free Trade Agreement, whose negotiations will proceed in parallel with the Japan-UAE negotiations, will contribute to the strengthening of economic relations and other fields between the two countries."
What is Cepa?
The push for a UAE-Japan Cepa comes in line with the Emirates' strategy to expand its network of trade partners. Launched in September 2021, the country's Cepa drive is aimed at achieving sustainable economic growth by removing unnecessary barriers to trade and improving market access for services, including the elimination or reduction of customs duties.
The UAE's Cepa programme is a cornerstone of national efforts to promote sustainable growth and economic diversification. It plays a pivotal role in boosting non-oil foreign trade, which surged to unprecedented levels in the first half of 2024, climbing 11.2 per cent year-on-year to reach Dh1.395 trillion.
Since its inception, the programme has witnessed the signing of 11 agreements to date with strategically important countries on the global trade map, including six agreements that are currently in effect.
The UAE is Japan's top trading partner in the Arab world in terms of exports and imports, with the UAE receiving 40 per cent of Japan's exports to Arab countries.
Japan is among the UAE's top 10 trading partners globally.
Non-oil trade between the two countries continued to thrive in the first half of 2024, reaching $8.1 billion, while the total trade for 2023 stood at $17.3 billion, marking a 17.4 per cent increase compared to 2022.
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