UAE's CEPA with Costa Rica, Mauritius come into force

Trade agreements with Costa Rica and Mauritius under the UAE's Comprehensive Economic Partnership Agreements (CEPA) will come into effect on Wednesday.

The agreements will reduce tariffs on a wide range of goods, simplify customs procedures, and establish pathways for investment into high-priority sectors both in the UAE and across the Central American and African markets.

CEPAs, since its rollout in 2021, lays the foundation for increased trade and investment with the strategically located and rapidly emerging economies. 

It is part of efforts by the UAE to increase its foreign trade to AED4 trillion (US$1.1 trillion).

The UAE currently has 12 deals signed and awaiting ratification with markets around the world, consolidating its status as a trade facilitator and global gateway for goods and services, national news agency Wam reported on Wednesday. 

Dr. Thani bin Ahmed Al-Zeyoudi, Minister of State for Foreign Trade, noted that it "reflects a significant step forward in our nation’s foreign trade programme and its aim to establish stronger, more integrated trading relationships with the most dynamic markets around the world".

Al Zeyoudi highlighted the CEPA's contribution to record non-oil trade in 2024, which reached an all-time high of $817 billion, marking a 14.6 per cent increase over 2023.

The CEPA programme currently has 27 concluded deals, expanding access for UAE businesses to over a quarter of the world’s population.

The deals

The UAE-Costa Rica CEPA, which was signed April 2024, builds on non-oil trade of more than $82.6 million in 2024, following substantial growth of 27.5 per cent compared 2023.

Under the CEPA, 99.8 per cent of UAE exports to Costa Rica will benefit from zero or reduced customs duties. The partnership will also help to facilitate strategic capital exchange, adding to the UAE’s approximate $673 million already invested in Central America.

Opening access to one of Africa’s most promising economies, the UAE-Mauritius CEPA is projected to boost the value of non-oil bilateral trade from its current $209.8 million to $500 million within five years, including a fourfold increase in UAE exports to Mauritius.

Over 97 per cent of UAE exports to Mauritius will benefit from immediate tariff elimination or gradual tariff reduction over a maximum of 5 years under the CEPA.