UAE Inks Joint Statement Agreement With Thailand To Launch CEPA Negotiations

Thai Deputy Prime Minister and Minister of Commerce Jurin Laksanawisit and UAE Minister of State for Foreign Trade Thani bin Ahmed Al Zeyoudi have agreed to begin talks to establish a Comprehensive Economic Partnership Agreement (CEPA) between their two nations.

On May 16, the first round of negotiations will start in the UAE. The importance of these negotiations for our growth strategy was emphasised by Thani Al Zeyoudi, who also emphasised the UAE's crucial role in facilitating international trade.

Al Zeyoudi emphasised the expanding ties between the UAE and Thailand, saying that the talks are a logical step after the first UAE-Thai Business Council was established in February 2023.

He added: “Thailand is an increasingly important trade and investment partner for the UAE, and a high-growth economy in the heart of an exciting, rapidly emerging region. We have enjoyed strong bilateral trade growth in recent years and believe a Comprehensive Economic Partnership Agreement will deliver a wealth of opportunity in sectors such as tourism, food security, IT, logistics and financial services. These negotiations represent another important step in our growth agenda and underline our role as a key enabler of global trade.”

The recovery in the crucial tourism industry will propel Thailand's economy, the second largest in South-East Asia, to increase by 3.8% in 2023. It also has a strong services industry, which accounts for 58.3% of the country's GDP. A CEPA between the UAE and Thailand will build on the two countries' fast expanding non-oil commerce, which grew by 21% in 2022 to reach USD 6.1 billion.

In addition to iron, steel, and cosmetics, the UAE's main exports to Thailand are ethylene polymers, gold, vegetable leftovers, delivery trucks and parts, and electric batteries. Thailand's top exports in the other direction include tyres, motor vehicle parts, office equipment and parts, and aluminium plating.

The UAE's ambitious foreign trade strategy, which aspires to treble its foreign commerce and the national economy by 2031, includes the CEPA negotiations with Thailand as the most recent.

The UAE has signed four CEPAs with India, Israel, Indonesia, and Turkey so far, with the first two of those agreements currently taking effect. The other two will be signed later.

The UAE is presently negotiating similar agreements with additional markets that are crucial from a strategic standpoint on both a regional and international scale.