Cambodia And UAE Sign Bilateral Trade Deal Focusing on Removal Of Trade Barriers

On Thursday, the United Arab Emirates and Cambodia signed a bilateral trade agreement. This is the fifth such pact the Gulf state has signed since launching a trade plan in 2021.

The trade policy, often referred to as Comprehensive Economic Partnership Agreements (CEPA), is a foundational element of the UAE's ambitions for economic expansion as it works to lessen its reliance on fossil fuels.

The agreement with Cambodia will reduce or remove tariffs, "eliminating barriers to trade, and creating new avenues for strategic investment," Thani Al Zeyoudi, UAE's minister for foreign trade tweeted.

Non-oil trade between the UAE and Cambodia reached $407 million in 2022, with the aim of pushing this beyond $1 billion in the next five years, Zeyoudi said.

The agreement should boost Cambodian exports of goods like grains, fruits, meats, clothes, and leather goods as well as UAE exports of machinery, oil, and lubricants. According to the UAE Ministry of Economy, the two nations will also look at investment prospects in infrastructure, transportation, and renewable energy.

The UAE signed CEPAs with Israel, Turkey, India, and Indonesia before Cambodia. It is currently working on over ten different CEPAs.