What the UAE free trade agreement means for Australian agriculture

Australia recently signed an historic free trade agreement with the United Arab Emirates (UAE), creating significant opportunities for our farmers and producers.

Treaty signature

The Australian Minister for Trade, Senator the Hon Don Farrell, officially signed the Australia – UAE Comprehensive Economic Partnership Agreement (CEPA) with his counterpart, UAE Minister of Foreign Affairs and Deputy Prime Minister His Highness Sheikh Abdullah bin Zayed Al-Nahyan, on 6 November 2024.

Minister for Agriculture, Fisheries and Forestry, the Hon Julie Collins MP, also signed a related investment MoU on Investment Cooperation in Food and Agriculture.

Benefits for Australian agriculture

In the 2023-24 financial year, Australian agriculture, fisheries and forestry exports to the UAE topped $1.7 billion, making the UAE our 11th largest agriculture export market.

Anticipated to take effect in mid-2025 – once passed through the Australian and UAE legislative systems – the agreement will eliminate tariffs on 99% of Australian exports to the UAE.

This means Australian farmers and agricultural producers will enjoy enhanced access to the UAE’s growing market for premium food and agricultural products.

Australian farmers and food producers will benefit from an estimated tariff savings of $50 million per year for our food and agriculture exports.

Key agriculture exports to immediately benefit from tariff elimination from entry-into-force of the agreement include frozen beef and sheep meat, dairy products, canola seeds and dried pulses, giving Australian farmers a competitive edge in the UAE market.

Tariffs will also be reduced on Australian wine, providing preferential access to the UAE’s high-value market of expatriate and tourist consumers.

The agreement provides an important gateway and trade diversification opportunities into the rapidly growing Middle East region.

A progressive agreement

The CEPA is the first Australian trade agreement to contain a standalone chapter on sustainable agriculture and food systems, recognising agriculture’s essential role in ensuring food security, driving climate resilience, emissions reductions and other environmental outcomes. This chapter also ensures that sustainability measures are not applied with a “one-size fits all” approach and do not create barriers to trade for our world class agricultural exports.

The agreement also features Australia’s first dedicated chapter which establishes a framework for cooperation to promote First Nations trade and investment interests. CEPA also recognises the contribution of Indigenous Australians to sustainable agriculture through traditional knowledge, innovations, practices and stewardship approaches.

The associated MoU on Investment Cooperation in Food and Agriculture will promote investment in supply chains for agriculture and food exports and projects that enable producers and processors to diversify and create value-added products and support sustainable agriculture and food production.

Next steps

Free trade agreement negotiations are a whole-of-government effort.

We worked closely with the Department of Foreign Affairs and Trade to help shape the negotiations, and with industry bodies and interest groups to ensure the interests of Australian agricultural producers were reflected in the final agreement.

The CEPA is now undergoing scrutiny by the Joint Standing Committee on Treaties (JSCOT). JSCOT is inviting public submissions to the inquiry until 17 January 2025.

Learn more about the inquiry and how to make a submission.