Todd McClay and Thani bin Ahmed Al Zeyoudi signing the deal last year. Photo: RNZ / Samuel Rillstone
New Zealand's free-trade deal with the United Arab Emirates (UAE) has kicked in.
Agriculture, Trade and Investment Minister Todd McClay said the New Zealand-United Arab Emirates Comprehensive Economic Partnership Agreement (CEPA) officially entered into force on Thursday, and would deliver up to an estimated $42 million in tariff savings per year for New Zealand exporters and the wider economy.
"The NZ-UAE CEPA is New Zealand's fastest-ever trade agreement," he said, noting it was negotiated in just over four months.
"From today, 98.5 percent of New Zealand's exports to the UAE will enter duty-free, rising to 99 percent by the start of 2027. This is one of the best goods market access packages we have ever secured."
New Zealand's exports to the United Arab Emirates included dairy, red meat, apples, kiwifruit, seafood, timber and honey, all of which would enter duty-free status.
The Emirates imported 90 percent of its food, making for strong new opportunities for New Zealand's producers, McClay said.
He said the UAE was one of New Zealand's largest markets in the Middle East, and a gateway into a $853 billion economy that was growing and diversifying rapidly.
Two-way trade between the two countries was already worth $1.44 billion a year, he said.
"Beyond goods, this agreement creates a platform for two-way investment, digital trade, and services opportunities that will generate jobs, lift incomes, and boost the economy for all New Zealanders.
"The CEPA strengthens our relationship with a key Gulf partner and takes us a step closer to the Government's goal of doubling the value of New Zealand's exports in 10 years."
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