The UAE and Cambodia have signed a Comprehensive Economic Partnership agreement that aims to more than double non-oil bilateral trade over the next five years. The UAE Economy Ministry said the deal aims to boost trade to $1 billion from $407 million in 2022.

The agreement was signed in Phnom Penh by UAE Minister of State for Foreign Trade Dr Thani Al Zeyoudi and Cambodian Minister of Commerce Pan Sorasak in the presence of Cambodian Prime Minister Hun Sen. The two countries concluded negotiations on CEPA in April, an agreement that aims to eliminate or reduce tariffs, remove unnecessary trade barriers, support investment, open market access for service exports and create more opportunities for businesses to form partnerships.

Dr. Al Zeyoudi said the UAE-Cambodia CEPA is a new milestone in our foreign trade agenda, reinforcing our growing role in the East-West trade corridor. This will not only help achieve our goal of doubling non-oil foreign trade by 2031, but will also expand our presence in Southeast Asia's fast-growing economies, opening new doors for exporters and reaching millions of consumers.

Cambodia will also benefit from our global connectivity and ability to re-export goods to more than 400 cities worldwide. We will continue to expand global trade to promote long-term sustainable growth and economic diversification for all who do business with us. Aiming to boost trade and economic relations with countries around the world, the UAE is working to sign 26 CEPAs to attract more investment and diversify its economy.

The country has signed similar agreements with India, Israel and Indonesia, Turkey and is close to concluding a deal with Kenya. It aims to remove unnecessary trade barriers, increase market access, and establish investment and trade enterprises with partners. Trade between the UAE and Cambodia increased to $407 million in 2022, an annual increase of 33% compared to 2021 and a 28% increase compared to 2019.

The agreement opens various service sectors of the Cambodian market to UAE companies, while also guaranteeing access to the Cambodian market for UAE products, covering 92 percent of tariff lines and more than 93 percent of the value of non-oil trade.

The two countries will now complete the necessary requirements and internal legal procedures for ratifying CEPA and the agreement will enter into force by the fourth quarter of 2023. Exports from the UAE are expected to reach $545 billion by 2030, with trade growing faster than the global average as the UAE focuses on developing new trade corridors and diversifying its exports.

According to estimates by Standard Chartered Bank, the country's exports are expected to grow at an annual rate of 5.5 percent, with metals and minerals as well as plastics and rubber driving growth. The UAE aims to deepen trade and investment ties with fast-growing economies in Asia, Africa and the Middle East, as well as attract $150 billion in foreign investment into its domestic non-oil sector and diversify its exports.

According to the World Trade Organization's Global Trade Prospects and Statistics report released in April, the UAE's merchandise trade with the rest of the world reached $1.02 trillion in 2022, with increased imports and exports due to higher crude oil prices. The WTO said the Gulf countries accounted for 2.4 percent of world merchandise exports in 2022.Editor/XingWentao