The United Arab Emirates and the Republic of Georgia have signed a Comprehensive Economic Partnership Agreement (CEPA) to abolish or considerably decrease tariffs, remove non-tariff obstacles, and increase trade in commodities, services, and investment. The nations have affirmed that the agreement will go into force in the first quarter of next year.
The agreement will significantly expand UAE's export opportunities, with a minimum expectation of at least $1.3 billion in exports to Georgia over the next five years, according to Dr Thani bin Ahmed Al Zeyoudi, the UAE Minister of State for Foreign Trade. He was speaking at a press event announcing details of the CEPA between UAE and Georgia, as per gulfnews.
The two countries were able to complete negotiations and sign the trade agreement after just three rounds of talks, said Levan Davitashvili, Vice Prime Minister, Minister of Economy and Sustainable Development of the Republic of Georgia. "We started negotiations in September 2022 and concluded talks in March 2023," he said.
"The percentage of the tariff reductions is almost 95 per cent of the overall historical trade between us and Georgia. And 99 per cent has been given from us to their (Georgia's) products," said the minister. Al Zeyoudi said the economic growth and benefits generated by the trade agreement are expected to offset any revenue losses from reduced tariff collections.
"So yes, there will be a reduction in tariff, but at the same time, there will be an added value in our GDP. So that is compensating the tariff reduction," he explained.