Korea, UAE strike bilateral free trade agreement
President Yoon Suk Yeol speaks during a summit with Sheikh Mohamed bin Zayed Al Nahyan, president of the United Arab Emirates, at the latter's palace in Abu Dhabi, Jan. 15. Yonhap
Korea and the United Arab Emirates (UAE) struck a bilateral free trade agreement (FTA) Saturday, which is expected to enhance bilateral trade and overall economic relations, according to Seoul's industry ministry.
Trade Minister Ahn Duk-geun and the UAE's foreign trade minister, Thani bin Ahmed Al Zeyoudi, signed the joint statement on the conclusion of negotiations for a bilateral Comprehensive Economic Partnership Agreement (CEPA) in Seoul, the Ministry of Trade, Industry and Energy said.
This is Korea's 24th FTA and the first free trade deal with a Middle Eastern nation.
The CEPA is a type of FTA, which emphasizes a broader scope of economic cooperation and exchanges on top of market opening.
The two countries plan to officially sign the agreement in the first half of next year following a legal review and necessary domestic procedures, the ministry said.
"The countries have concluded the negotiations, reaching a significant milestone in light of the strategic bilateral relationship," the joint statement read.
"The CEPA will serve as a catalyst for the enhancement and promotion of economic relations, while also increasing and diversifying bilateral trade,"
Under the deal, Korea will remove tariffs on 92.8 percent of all items traded, and the UAE will lift tariffs on 91.2 percent of all products within up to 10 years.
Korea is expected to enjoy growth particularly in exports of eco-friendly vehicles, weaponry and electronics, as well as fresh food items.
The UAE will also remove a 3 percent tariff on crude oil over the next 10 years, which will help boost Korean refiners' price competitiveness and ensure stable supplies.
"In the services sector, the UAE decided to open its online gaming, medical services and other industries in which South Korea is highly interested. The agreement is expected to further promote K-content in the Middle East," a ministry official said.
"The UAE is Korea's key partner country in the Middle East under 'the special strategic partnership.' The CEPA is expected to further boost bilateral ties in a future-oriented manner and beef up cooperation in such fields as energy and advanced industries," he added.
Two-way trade came to around $19.5 billion in 2022, and the UAE is Korea's 16th major trading partner, government data showed. (Yonhap)