The Comprehensive Economic Partnership Agreement between the UAE and Cambodia has officially entered into force. The agreement aims to increase trade flows, provide opportunities for strategic investments, and stimulate economic diversification in the two countries, by removing or reducing customs duties on more than 92% of goods and products, eliminating unnecessary barriers to trade, and improving access to services exports.
The Comprehensive Economic Partnership Agreement between the UAE and Cambodia is the fifth to enter into force, and aims to increase the total value of non-oil trade between the two countries to one billion dollars annually by 2030.
The agreement stems from the growing bilateral relations that resulted in non-oil trade between the UAE and Cambodia exceeding $300 million in the first nine months of 2023, which is equivalent to the number recorded in the same period in 2022, an increase of 30.5% over the same period in 2021.
Future partnership
Minister of State for Foreign Trade, Dr. Thani bin Ahmed Al Zeyoudi, said: “The start of implementation of the Comprehensive Economic Partnership Agreement with Cambodia represents an important step forward within our foreign trade agenda, and strengthens bilateral relations with a strong partner in the ASEAN region, which is of increasing importance.”
He added: “This agreement will establish a partnership with promising future prospects that will contribute to providing new opportunities and advancing investments in priority sectors in a way that enhances global economic security.” “By consolidating trade routes between East and West, we look forward to the agreement exploring the benefits of open, rules-based trade, which is a system embraced by the two friendly countries.”
Unique agreement
For her part, Cambodia’s Minister of Commerce, Cham Nimol, said: “The Comprehensive Economic Partnership Agreement between the UAE and Cambodia is unique for the two friendly countries, and will strengthen relations and cooperation between the two countries and consolidate the growing ties between the Arab world and the Association of Southeast Asian Nations (ASEAN), as the two regions are considered It is currently among the most developed and vibrant regions in the world. Therefore, there are multiple opportunities for joint growth that need to be explored, as the UAE can be a launching pad for Cambodia’s exports to the Arab market. Likewise, Cambodia could be a base for UAE exports to the ASEAN region.”
She stressed that the comprehensive economic partnership agreement between Cambodia and the UAE will serve as another major driving force for joint economic growth in the two countries, strengthening supply chains, stimulating trade flows, encouraging mutual investment, and thus leading to economic integration to achieve comprehensive, flexible and sustainable growth for both countries and the surrounding region, which is This is in line with Cambodia’s five-year strategy of economic diversification and enhanced competition.
economic development
Cambodia, one of the most important and promising economies in the Southeast Asian region, witnessed economic growth of 5.2% in 2022, after achieving an annual growth rate of 7.7% between 1998 and 2019.
The UAE will benefit from new export opportunities through this agreement in the fields of machinery, oils and lubricants, cars and spare parts, while the most important exports that are expected to flourish in Cambodia include grains, fruits, meat, processed foods, clothing, shoes and leather goods.
Accelerating investment flows
According to feasibility studies, the agreement will accelerate investment flows between the two countries in priority sectors, including logistics services, infrastructure, travel, tourism and renewable energy, noting that the value of foreign direct investments amounted to $3.8 million for both sides by the end of 2020, while the total investment flows reached Emirates to Cambodia by the end of the first half of 2022 approximately three million dollars.
The Comprehensive Economic Partnership Agreements Program represents a key element within the UAE’s new foreign trade strategy, through which it seeks to build stronger and more integrated trade relations with the most vibrant markets around the world.
It is noteworthy that the Comprehensive Economic Partnership Agreement between the UAE and Cambodia is the fifth that has officially entered into force, while procedures are continuing to enter into more similar agreements that the UAE has concluded with other countries, in preparation for their implementation soon.
2024-02-08 09:47:01
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