Image credit: WAM
The UAE and Costa Rica have signed a Comprehensive Economic Partnership Agreement (CEPA) that is expected to boost non-oil bilateral trade between the two countries, which stood at $65m in 2023, up 7 per cent from the previous year.
The trade pact between the two countries is expected to enhance trade flows, increase private-sector collaboration, and provide new investment opportunities in priority sectors such as logistics, energy, aviation and tourism.
UAE’s President Sheikh Mohamed bin Zayed Al Nahyan said the country is committed to the establishment of strategic partnerships with nations that prioritise forward-thinking economic development for the betterment of the global population. The UAE President witnessed the signing of the trade agreement virtually.
The UAE has initiated a raft of bilateral trade, investment and cooperation deals since 2021 to bolster efforts aimed at diversifying income sources and economic sectors.
The Gulf state has so far ratified five CEPAs with India, Israel, Indonesia, Turkey and Cambodia, according to the Ministry of Economy’s website.
Together with Costa Rican President Rodrigo Chaves Robles I witnessed the signing of a Comprehensive Economic Partnership Agreement between our two countries. The UAE is committed to building bridges of friendship and cooperation with nations that share our vision of long-term… pic.twitter.com/6NuAdM30ws
— محمد بن زايد (@MohamedBinZayed) April 18, 2024
The country is currently in CEPA negotiations with more markets of strategic importance at regional and global levels to establish similar agreements.
Dr. Thani bin Ahmed Al Zeyoudi, the Minister of State for Foreign Trade stated that the CEPA agreement will grant the UAE enhanced access to the Costa Rican market, reaching 98 per cent of tariff lines without customs duties or with reduced customs duties.
“Costa Rica is one of the most promising emerging economies in Central America, located at the crossroads of trade between the Americas. Its commitment to the green economy offers opportunities for renewable energy and ecotourism projects benefiting the private sector in both countries,” said Al Zeyoudi.
The trade agreement between the two nations is forecasted to contribute $46m annually to the UAE’s GDP by 2031 and $44m annually to Costa Rica. It will also increase total cumulative direct UAE exports by the end of 2031 to $81m and $134m for Costa Rica.
The trade volume between the two countries has expanded to a record $244.3m over the past five years, rising from $34.2m in 2019 to $64.6m in 2023 – an increase of 88.9 per cent.