The UAE and New Zealand's comprehensive economic partnership agreement has come into effect in a move that is expected to boost trade and bolster economic ties between the two countries.
The deal is set to increase economic collaboration across a wide range of sectors, from food production to energy, the trade ministers of the two countries said in a statement on Wednesday.
“The ratification of the UAE-New Zealand Cepa marks a historic milestone in our economic partnership, fostering innovation and sustainable growth for mutual benefit,” said Dr Thani Al Zeyoudi, Minister of State for Foreign Trade.
“This agreement not only enhances our trade relations but also opens new avenues for investment and private sector collaboration in key sectors such as food production, education, renewable energy and advanced technologies.”
The UAE-New Zealand Cepa deal, which was signed in January 2025, is expected to boost annual bilateral trade to more than $5 billion by 2032, up from the current average of $1.5 billion recorded from 2019 to 2023, according to the statement.
The pact will remove or reduce tariffs, ease customs procedures and promote more private sector collaboration. The Cepa is New Zealand’s first trade agreement with a Middle Eastern country, marking a step in strengthening economic ties with the region.
“This agreement marks a transformative moment in New Zealand’s trade history,” Todd McClay, New Zealand’s Minister for Trade and Investment, said. The agreement will deepen partnerships in sectors of strategic importance for New Zealand's economy from food and energy to innovation and education.
“The Cepa with the UAE not only opens doors for our exporters and investors but also reflects our shared commitment to growth,” Mr McClay said.
Cheaper goods
Under the terms of the Cepa, New Zealand will provide 100 per cent duty-free access to imports from the UAE, while the UAE will grant duty-free access to 98.5 per cent of New Zealand products, according to the statement. The reduction of tariffs on Kiwi goods imported to the UAE can potentially lower the prices of these products in the market, making them more accessible for more consumers.
Major imports from New Zealand to the UAE include dairy products, industrial goods, horticulture, red meat and travel services, according to the website of New Zealand's Ministry of Foreign Affairs and Trade. New Zealand's goods and services exports to the UAE totalled NZ$1.15 billion ($669 million) in the year to September 2024, while two-way trade was NZ$1.3 billion, it said.
Emirates airline operates flights to New Zealand's harbour city of Auckland and to Christchurch, the largest city on New Zealand's South Island. The Cepa announcement comes as the UAE continues to strengthen its trade ties with countries around the world to boost non-oil foreign trade.
Earlier this week, the UAE and Angola signed a Cepa as part of President Sheikh Mohamed's state visit to the country, marking a critical step in strengthening the UAE's strategic partnerships with African nations.
The Arab world's second-largest economy is targeting $1 trillion in total trade value by 2031 and aiming to double the size of its economy to surpass $800 billion by the same year, with the Cepa programme being a vital pillar in advancing the UAE's economic goals.
Since its launch in September 2021, the UAE's Cepa programme has concluded agreements with 28 countries, improving trade relations and access for UAE businesses to markets that reach nearly a quarter of the world’s population.
The UAE's non-oil foreign trade hit a record Dh3 trillion last year − up 14.6 per cent year-on-year − with Cepas contributing Dh135 billion ($36.8 billion), an increase of 42 per cent compared with the previous year. The country's non-oil foreign trade also rose by 24 per cent annually in the first six months of 2025.
