UAE trade agreements with Costa Rica and Mauritius take effect

UAE trade agreements with Costa Rica and Mauritius take effect - Trade Treasury Payments

The UAE’s Comprehensive Economic Partnership Agreements (CEPAs) with Costa Rica and Mauritius officially came into force on Wednesday.

These two agreements are the latest to take effect under the CEPA framework and the seventh and eighth such deals implemented since the programme launched in 2021. Previous agreements with India, Israel, Turkey, Indonesia, Cambodia, and Georgia, among others, are already beginning to reshape the UAE’s non-oil trade.

Deeper integration with emerging markets

The Costa Rica and Mauritius CEPAs expand the UAE’s trade links into Central America and Africa, which are both becoming increasingly relevant in global supply chains and investment.

Dr Thani Al Zeyoudi, the UAE’s Minister of State for Foreign Trade, said, “[The new deals] reflect a significant step forward in our nation’s foreign trade programme and its aim to establish stronger, more integrated trading relationships with the most dynamic markets around the world.”

The agreement with Costa Rica eliminates or reduces tariffs on 99.8 per cent of UAE exports to the country. In 2024, non-oil trade between the two reached $82.6 million, following annual growth of nearly 28 per cent.

The Mauritius agreement is expected to have a wider commercial impact, with bilateral non-oil trade projected to rise from $209.8 million to $500 million over five years. More than 97 per cent of UAE exports will see immediate or phased tariff reductions under the deal.

Trade outcomes and strategic goals

The UAE has been seeking to diversify its economy from just oil, and increasing non-oil exports is one method of achieving this aim.

Non-oil trade from the Arab Gulf states reached $817 billion in 2024, a 14.6 per cent year-on-year increase. These exports now account for 24 per cent of total exports with the CEPAs being a key driver for in boosting non-oil exports to partner countries.

The government’s longer-term trade target is $1.1 trillion by 2031. Progress toward that goal continues, with 12 additional CEPAs signed and awaiting ratification. Five of those deals were signed this year, including with Malaysia, New Zealand, Kenya, Ukraine, and the Central African Republic.