Turkiye, UAE discuss proposed CEPA aimed at doubling trade

The agreement is aimed at removing trade barriers and promoting free movement of goods by reducing tariffs. The UAE is seeking CEPAs with several countries and has signed such pacts this year with India and Israel.

Turkish trade minister Mehmet Mus and UAE minister of state for foreign trade Thani al-Zeyoudi addressed the joint press briefing.

The proposed deal will enable both sides to achieve a bilateral trade volume of nearly $15 billion, Mus said, referring to the highest level ever recorded back in 2017, before declining as relations strained. The CEPA is expected to double bilateral trade, Al-Zeyoudi said.

“By cutting tariffs, promoting free movement of goods, facilitating capital flows and reducing trade barriers, we will make it easier than ever to do business. It will also underpin a new era of cooperation,” he noted.

“The United Arab Emirates is currently the largest trading partner of Turkey in the Gulf region with a bilateral trade volume of around $8 billion,” Mus said.

The turnover had dropped to as much as $6.9 billion in 2018, before rebounding to nearly $7.9 billion in 2019, according to the Turkish Statistical Institute (TurkStat). The volume rose further to $8.3 billion in 2020 despite the coronavirus pandemic, before dropping slightly to $7.6 billion last year.

Both the countries will become more resistant to cyclical risks and tests when the CEPA negotiations are completed as soon as possible, he said.

The proposed CEPA aims at initiating new steps to stimulate trade and investment in renewable energy, financial services, entrepreneurship, advanced technology, innovation, agriculture, food security, logistical support and tourism, according to an official UAE press release.

Turkey’s exports to the country had hit an all-time high of nearly $9.2 billion in 2017, compared to imports worth $5.5 billion.

However, Turkey registered a trade deficit in the following years, before it reversed the trend again last year. Its exports had totaled $3.14 billion, $3.52 billion and $2.72 billion in 2018, 2019 and 2020, respectively, versus imports of $3.78 billion, $4.34 billion and $5.57 billion, according to the data.

Turkey exported around $5.2 billion worth of goods to the UAE last year and bought nearly $2.4 billion worth of products from the country.

Fibre2Fashion News Desk (DS)