TARIFFS on sheep meat and other agricultural exports entering the United Arab Emirates will be eliminated under the Australia – United Arab Emirates Comprehensive Economic Partnership Agreement signed last week.

The signing on Wednesday came after it was announced that negotiations between the parties had concluded on September 17.

The agreement will cut tariffs on more than 99 percent of Australian exports to UAE including grains, oilseeds, meat, dairy, nuts, horticulture and honey.

It is estimated Australian farmers and producers will benefit from an estimated $50 million annually in tariff savings alone.

Sheep meat was Australia’s second largest agriculture export to the UAE valued at $270M annually.

Minister for Trade and Tourism Don Farrell said UAE was Australia’s largest market in the Middle East with the “two-way trade valued at $9.9 billion in 2023”.

“This is a great deal for Australian farmers and producers – over 99 percent of Australian products will enter the UAE tariff free,” Mr Farrell said.

“This deal means more than just numbers. Every product we export to the world translates to thousands of Australian jobs.”

Minister for Agriculture, Fisheries and Forestry Julie Collins said the deal also contained Australia’s first standalone chapter on sustainable agriculture and food systems.

“I am proud to say that it is the first FTA to contain a standalone chapter on sustainable agriculture and food systems, recognising agriculture’s essential role in ensuring food security, driving climate resilience, emissions reductions and other environmental outcomes,” Ms Collins said.

“It also ensures that sustainability measures are not applied with a ‘one-size fits all approach’ and do not create barriers to trade for our world class agricultural exports.”

The trade and investment package includes agreements cooperation in investment in areas such as food and agriculture and green and renewable energy.

It includes five Investment Cooperation Memoranda of Understanding and a separate investment agreement.

The food and agriculture investment MOU features pledges to drive investment that that address growing demand for agricultural goods.

This includes supporting investment in supply chains for bilateral agricultural exports, developing projects that enable producers and processors to diversify and create value-added products, advancing efforts to reduce greenhouse gas emissions, promoting best land management practices, and implementing climate-smart sustainable agricultural technologies and practices.

NFF welcomes signing

The National Farmers’ Federation president David Jochinke said the agreement was a “meaningful step forward for Australia’s trade partnerships in the Middle East.”

“Crucially, this improved market access to the UAE will improve trade diversification and resilience for Australian producers, and is the first trade deal between Australia and a country in the Middle East,” Mr Jochinke said.

The deal opens new doors for Australian farmers, allowing us to capitalise on our global reputation for high-quality, sustainable produce.

The NFF commended Minister Farrell and the Government for securing this important agreement and looks forward to further collaboration to maximise its benefits.

Source: DFAT and NFF.