Australians to Save at Checkout with UAE Trade Deal
Australian Households and Businesses to Benefit from Reduced Tariffs and Increased Investment
Australia Secures Free Trade Deal with UAE: Savings and Investment Opportunities
Cheaper household goods and building materials for oysters are on the cards after Australia secured a free trade deal with the United Arab Emirates.
Trade Minister Don Farrell says Australian farmers, including beef and sheep producers, will save $50 million a year on their exports.
Households and businesses save $40 million annually.
Imports of jewelry, perfumes, furniture, copper wire, glass containers and plastic products from Middle Eastern countries will be reduced.
Emirati tariffs will be reduced on 99 per cent of Australian products entering the country, saving $135 million in the first year and $160 million annually once the deal is fully implemented.
“The deal we have with the UAE is of a high standard and it’s a very good deal for Australia,” Senator Farrell told reporters in Canberra on Tuesday.
Senator Farrell called on unions to back the deal after some raised concerns about poor conditions for workers in the Emirates, the criminalization of homosexuality and little climate action.
The Australian Council of Trade Unions has opposed preferential market access to countries with poor labor rights.
The Trade Minister says the free trade agreement will benefit Australian workers and businesses.
Investment from the multi-trillion dollar Emirati Investment Fund will flow into Australian markets, particularly in the critical minerals and renewable energy sectors, Senator Farrell said.
“Where there was a free trade agreement with the United Arab Emirates, the sovereign wealth fund followed,” he said.
“With the interest of many countries, including the UAE, in the important mineral space, I am confident that we will receive many and more investments there.”
There is no investor-state settlement dispute mechanism, which allows an investor to bring a claim against one of the contracting states.
The agreement will be signed in the coming weeks, but will not become law until both countries ratify it.
It comes as Australia tries to diversify its trading markets after China imposed billions of dollars in fines and restrictions in a years-long trade war.
According to government figures, two-way goods and services trade with the Emirates will be worth $9.3 billion by 2022, making it Australia’s 19th largest trading partner.
Australian exports include alumina, meat, oilseeds and higher education.
UAE investment in Australia to reach $12.6 billion by 2022
