The United Arab Emirates (UAE) has initiated negotiations with Tunisia on a bilateral trade and investment agreement. This follows a virtual meeting between the trade ministers of both countries, who expressed their commitment to expanding and deepening bilateral relations.
The two nations will negotiate the specific chapters and provisions of what is known as a Comprehensive Economic Partnership Agreement (CEPA). If signed, this agreement will be the UAE’s 27th CEPA.
The announcement was made by UAE Minister of State for Foreign Trade, Thani bin Ahmed Al Zeyoudi, and his Tunisian counterpart, Samir Abid, Tunisia’s Minister of Trade and Export Development.
The CEPA aims to strengthen trade and investment between the UAE and Tunisia by reducing tariffs and trade barriers, improving market access, and establishing investment pathways across various sectors.
Al Zeyoudi emphasized the importance of this partnership, stating: “Tunisia is a valuable partner offering a wide range of trade and investment opportunities that will enhance our mutual economic growth and prosperity.
The launch of negotiations for a Comprehensive Economic Partnership Agreement represents a crucial opportunity for the UAE and Tunisia to deepen their economic ties and open new avenues for trade and investment.”
A “decisive turning point”
Reflecting the current trade dynamics, non-oil trade between the UAE and Tunisia reached approximately $350 million in 2024, marking a 7.7% growth compared to the previous year.
Notably, the UAE has emerged as Tunisia’s leading trade partner in the Gulf Cooperation Council (GCC) region, underscoring the importance of intensifying bilateral efforts, according to The Pinnacle Gazette.
The UAE’s primary non-oil exports to Tunisia include semi-finished iron, sulfur, and raw aluminum, as reported by the Observatory of Economic Complexity.
Samir Abid also highlighted the significance of the CEPA during discussions, stating: “The agreement we are working on will mark a decisive turning point in establishing a new comprehensive framework for economic and trade collaboration between our nations.
It will serve the interests of both countries and open vast opportunities for joint cooperation in priority areas, ensuring mutual benefits for both parties.”
As negotiations progress, both sides will define specific chapters and provisions of the CEPA to ensure a balanced and fair agreement. Once concluded, the CEPA is expected to unlock significant investment opportunities in Tunisia.
The country’s diversified economy boasts a strong export portfolio, including vital sectors such as agriculture, manufacturing, and renewable energy. This agreement aims to act as a catalyst, enabling UAE investors to capitalize on Tunisia’s high-potential sectors while enhancing Tunisia’s access to GCC and global markets.
The launch of negotiations with Tunisia is part of the UAE’s broader strategy to double the size of its economy and amplify its role in international trade.
With a total of 26 CEPAs concluded and numerous existing agreements, the UAE’s CEPA program has significantly facilitated access to high-growth markets. In 2024, the UAE achieved a historic record in total trade, reaching $816 billion, a substantial 14.6% increase compared to 2023.
This CEPA initiative reflects the aspirations of both nations to advance their economic partnership, balance trade relations, and open numerous investment opportunities. As the two countries move forward with negotiations, the potential benefits of this partnership will be closely monitored across various sectors.
The UAE has signed CEPA agreements with New Zealand, Kenya, and Malaysia in January 2024.
In early March, the UAE and the Central African Republic signed a trade agreement expected to boost bilateral trade to over $1 billion within the next five to seven years.
The UAE’s first CEPA was signed with India three years ago. Both countries are now planning to expand this ten-year trade agreement to include eight new sectors.
