The United Arab Emirates (UAE) and Japan are in talks to establish a Comprehensive Economic Partnership Agreement (Cepa) to enhance collaboration and support economic growth. President Sheikh Mohamed announced the initiation of negotiations, emphasizing the mutual commitment to strengthening their relationship through new levels of cooperation. The agreement aims to facilitate investment, support innovation, and contribute to the economic diversification efforts of both countries, providing more opportunities for business communities.
Japanese Prime Minister Fumio Kishida also highlighted the significance of the Cepa talks, expressing optimism that the agreement will strengthen economic relations and other fields between Japan and the UAE. The agreement will build upon the Japan-GCC Free Trade Agreement negotiations and is expected to be ambitious, balanced, and comprehensive. The UAE’s strategy to expand its network of trade partners aligns with the Cepa drive, which aims to achieve sustainable economic growth by removing trade barriers and improving market access for services.
The UAE’s Cepa programme plays a crucial role in promoting sustainable growth and economic diversification, boosting non-oil foreign trade levels to unprecedented heights. The programme has already secured 11 agreements with strategically important countries, with six agreements currently in effect. The UAE is Japan’s top trading partner in the Arab world, receiving 40% of Japan’s exports to Arab countries, while Japan ranks among the UAE’s top 10 trading partners globally.
Non-oil trade between the UAE and Japan has continued to flourish, reaching $8.1 billion in the first half of 2024, with total trade for 2023 amounting to $17.3 billion—a 17.4% increase compared to 2022. The Cepa agreement is expected to further enhance the economic relations between the two countries, creating new avenues for collaboration and economic growth. By strengthening their partnership through mutual commitment and strategic cooperation, the UAE and Japan are set to embark on a new chapter of economic prosperity and innovation.
