The UAE has a strong economic base and the ability to direct investments to emerging markets in various promising regions of the world, within a framework that ensures the achievement of benefits for all parties. By expanding partnerships with Latin American countries, the UAE seeks several goals, including diversifying markets and reducing dependence on traditional markets in Europe and Asia, by opening new markets that enhance the stability of the national economy and provide opportunities for sustainable growth.
During a joint discussion session with Gabriel Boric Fonte, President of the Republic of Chile, held on June 30, 2024, His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the State, may God protect him, referred to the interest the UAE attaches to strengthening its relations with Latin American countries, stressing that “the UAE has a comprehensive vision for cooperation with these countries, based on developmental aspects, based on the state’s belief that cooperation and stability are the basic pillars for achieving development and a more prosperous and sustainable future for all peoples of the world.”
In this context, the signing of the Comprehensive Economic Partnership Agreement between the UAE and the Republic of Chile took place on July 30, 2024, in the presence of His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the State, may God protect him, and Gabriel Boric Font, President of Chile. The objectives of the agreement are to stimulate non-oil bilateral trade by eliminating or reducing duties on approximately 99.5% of the value of UAE imports from Chile, removing barriers to trade, simplifying customs procedures, establishing new paths for investment flows and cooperation, and providing a platform for the private sector on both sides to build partnerships. The signing of the agreement with Chile indicates rapid progress towards broader relations with Latin American countries. On April 19, 2024, the UAE signed the Comprehensive Economic Partnership Agreement with the Republic of Colombia to strengthen existing economic relations. Non-oil bilateral trade between the two countries reached $553.1 million in 2023, a record increase of 43% compared to 2022 and more than double the total achieved in 2021. Signing the agreement will contribute to doubling these numbers within five years of its implementation. The UAE also signed the Comprehensive Economic Partnership Agreement with Costa Rica on April 18, 2024.
As with Colombia, non-oil bilateral trade between the UAE and Costa Rica in 2023 increased by about 7% compared to 2022, and 31% compared to the figures recorded in 2021.
In the same context, the UAE is moving towards concluding a comprehensive agreement with Ecuador, after the two countries signed a joint declaration on April 24 expressing their intention to begin negotiations on it, in light of the steady increase in bilateral non-oil trade between them, as its volume reached $675 million in 2023, an increase of 76% compared to 2022, and more than three times its volume in 2021, in addition to DP World’s investment in the Posorja Port project, which is the largest private investment in Ecuador currently, at a value of $1.2 billion. Brazil, which has the largest economy in South America, is of particular importance to the UAE, as the value of non-oil trade between the two countries reached $4.3 billion in 2023, a growth of 42.1% compared to 2022.
Brazil is also the largest recipient of UAE exports in South America, and the second largest trading partner in the Americas after the United States. In addition, the UAE has committed to supporting the Brazilian economy with more than $5 billion in investments. These economic agreements come within a broader context, which includes various forms of cooperation in political, social and cultural aspects, in a way that embodies the UAE’s position and its ability to extend its relations to various countries and regions of the world, in a way that achieves mutual interests and contributes to achieving more stability, prosperity and prosperity everywhere in the world.
*Issued by the Emirates Center for Strategic Studies and Research.
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