South Korea approves landmark free trade deal with UAE

South Korea’s National Assembly has approved a Comprehensive Economic Partnership Agreement (CEPA) with the United Arab Emirates, marking the country’s first free trade agreement with a Middle Eastern partner, according to Yonhap.

The deal follows three years of negotiations that concluded in October 2023, with the formal signing of the agreement taking place in May 2024.

CEPA is a type of free trade agreement that goes beyond the traditional reduction of tariffs, aiming to promote deeper economic cooperation between the two countries.

Under the terms of the agreement, South Korea and the UAE will eliminate tariffs on more than 90 per cent of goods traded between them over a ten-year period once the deal comes into force.

South Korean exports expected to benefit include food products, cosmetics, and military equipment. The agreement also предусматривает the gradual removal of tariffs on oil imports from the UAE over the same period.

Analysts say the agreement is likely to accelerate bilateral cooperation in key sectors, including energy, raw materials, and advanced industries.

The South Korean government said it plans to formally notify the UAE once it completes the necessary domestic procedures required to implement the agreement and will then coordinate the next steps.

By Tamilla Hasanova