Al Ghurair is the UAE’s major oilseed crusher, and its plant located portside at Jebel Ali in Dubai is a major importer of Australian canola. Photo: Emirates Building Systems

THE AUSTRALIAN Government Trade and Tourism Minister Don Farrell this week announced a new economic partnership agreement with the United Arab Emirates.

Under the UAE Comprehensive Economic Partnership Agreement, more than 99 percent of Australian products will enter the UAE tariff free, resulting in estimated tariff savings of $135 million in the first year, rising to $160M per year once the agreement is fully implemented.

Mr Farrell said the agreement will “deliver real benefits for Australian farmers and food producers, with estimated tariff savings of $50M per year for our food and agriculture exports”.

“We are a trading nation, and the Albanese Government is delivering on its commitment to open up new opportunities for our exporters, farmers, producers, and businesses to diversify their markets,” Mr Farrell said.

“The UAE has some of the largest Sovereign Wealth Funds in the world.

“A trade agreement with the UAE will facilitate investment, which is important to achieving the Albanese Government’s ambition of becoming a renewable-energy superpower.

“Under this trade agreement, Aussie exports are expected to increase by $678M per year, but this deal means more for Australia than just numbers.”

Key imports to the UAE include canola, chickpeas, and lentils as well as alumina, dairy, seafood, steel, meat, nuts, and coal.

In 2023, Australia exported 828,108t of canola, 84,680t of chickpeas, and 171,367t of lentils to the UAE, according to data from the World Integrated Trade Solution.

This equated to an estimated total value of trade for commodities of more than US$651M, including canola at $492.5M, chickpeas at $41M, and lentils at $117.7M.

National Farmers Federation chief executive  officer Tony Mahar said the NFF welcomes the UAE trade deal.

NFF CEO Tony Mahar.

“The Comprehensive Economic Partnership Agreement improves access to an important market for Australian farmers, allowing them to diversify,” Mr Mahar said.

“The deal reflects the global demand for Australia’s premium produce and reinforces our reputation for growing sustainable, high quality produce.

“The deal will deliver $50M each year in tariff savings to Australian farmers and food producers and further support trade diversification, improving their profitability and competitiveness.

“This agreement also marks a strategic opening into the Middle East, a growing market of more than 58M people with a heavy reliance on food imports.

“We look forward to seeing further details of the agreement once they are available.”

Australia and the UAE are now both working to formalise the legal treaty text in preparation for signing later this year.

Source: Australian Government, NFF