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| South Korean Minister of Trade, Industry and Energy Ahn Duk-geun (right) and UAE Minister of Foreign Trade Thani bin Ahmed Al Zeyoudi sign a joint statement on the completion of CEPA negotiations in Seoul on October 14. (Source: Yonhap) |
According to the announcement of the Ministry of Trade, Industry and Energy of South Korea, Minister Ahn Duk-geun and UAE Minister of Foreign Trade Thani bin Ahmed Al Zeyoudi signed a joint statement on the completion of negotiations on the bilateral Comprehensive Economic Partnership Agreement (CEPA) in Seoul.
The joint statement stated that the two countries “have concluded negotiations, achieving an important milestone in the strategic bilateral relationship.”
Under the deal, South Korea will eliminate tariffs on 92.8 percent of all traded goods and the UAE will eliminate tariffs on 91.2 percent of all products within 10 years.
South Korea is expected to see particular growth in exports of eco-friendly vehicles, weapons and electronics as well as fresh food items.
The UAE will also eliminate a 3% tariff on crude oil over the next 10 years, which will help increase the price competitiveness of South Korean refineries and ensure stable supplies.
CEPA is a type of FTA that emphasizes a broader scope of economic cooperation and exchange in addition to market opening. This is South Korea's 24th FTA and the Northeast Asian country's first free trade agreement with a Middle Eastern country.
The two countries plan to officially sign the agreement in the first half of next year after reviewing legal and necessary domestic procedures, the Ministry of Trade, Industry and Energy said.
Government data shows two-way trade is expected to reach about $19.5 billion by 2022, and the UAE is South Korea's 16th-largest trading partner.
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