Trade Agreements Uae
Trade Agreements UAE: How They Impact The Economy
Trade agreements are an essential part of any country`s economic policy. They enable nations to create favorable trading conditions between themselves, resulting in reduced trade barriers and increased business opportunities.
The United Arab Emirates (UAE) is no exception, and it has entered into several trade agreements over the years to promote its economic growth and development. These agreements cover various sectors, including manufacturing, agriculture, and services, and they provide investors with access to new markets and opportunities.
In this article, we will delve deeper into the various trade agreements that the UAE has signed, highlighting the impact that these agreements have had on the country`s economy.
The GCC Custom Union
The Gulf Cooperation Council (GCC) is a political and economic union made up of six countries, including the UAE. In 2003, the GCC signed a customs union agreement that eliminated customs duties and established a unified tariff structure for all goods imported into the GCC. The agreement aimed to boost intra-regional trade and encourage the use of local products.
The GCC custom union has resulted in increased trade within the region, with intra-GCC trade accounting for around 11% of total global trade. The UAE`s non-oil exports to other GCC countries have also increased significantly, with a 14% increase in 2020 compared to the previous year.
Free Trade Agreements
The UAE has also signed several free trade agreements (FTAs) with various countries and regions worldwide. These agreements aim to reduce trade barriers and promote economic cooperation between signatory countries.
One of the most significant FTAs that the UAE has signed is the Gulf Cooperation Council (GCC) – European Free Trade Area (EFTA) agreement. The agreement was signed in 2013 and came into effect in 2014, reducing tariffs on goods traded between the two regions.
The UAE has also signed FTAs with Japan, South Korea, and Australia, among others. These agreements have resulted in increased trade and investment flows between the UAE and its trading partners.
The Dubai International Financial Centre (DIFC) has also signed several FTAs with other financial centers worldwide, including London, New York, and Hong Kong. These agreements have promoted cooperation between financial institutions and facilitated the movement of capital between the UAE and other countries.
Conclusion
Trade agreements play a crucial role in promoting economic growth and development. The UAE`s trade agreements have enabled the country to increase its trade and investment flows with other countries, thereby promoting economic diversification and reducing its dependence on oil.
The GCC customs union and the various FTAs that the UAE has signed have resulted in increased trade, job creation, and improved living standards for its citizens. They have also attracted foreign investment, promoting the UAE as a business-friendly destination.
In conclusion, trade agreements are an essential tool for the UAE and other countries seeking to boost their economic growth and development. The UAE`s trade agreements have had a positive impact on its economy, and the country is likely to sign more agreements in the future to further enhance its economic position.