UAE, Cambodia sign comprehensive economic partnership agreement to stimulate trade, investment

The United Arab Emirates and the Kingdom of Cambodia have successfully completed talks on a comprehensive economic partnership agreement (CPP) and all the terms of this agreement have been agreed, paving the way for a new era of trade and investment cooperation between the two friendly countries.

Confirming the successful completion of the talks, Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, and Ban Surasak, Minister of Trade of the Kingdom of Cambodia, signed a joint statement announcing the final terms of the agreement, in the presence of officials from both sides.

The Comprehensive Economic Partnership Agreement between the UAE and Cambodia stimulates the increase and diversification of bilateral trade by eliminating tariffs, removing non-tariff trade barriers and promoting the exchange of goods, services and investments.

This agreement stems from the growing economic relations between the UAE and Cambodia, which resulted in 2022 exceeding the value of non-oil trade worth $ 401.3 million, representing a growth of 31 percent compared to 2021, and 146 percent compared to the year before the Covid pandemic 2019. In terms of investments, FDI stood at $3.8 million by the end of 2020.

His Excellency Dr. Thani Al Zeyoudi praised this important step and the new milestone in the UAE's plans to expand its foreign trade with the world, in line with the vision of the wise leadership.

"Cambodia is one of the fastest growing economies in Southeast Asia, and the agreement helps provide a promising trade and investment path between the two countries, opening a promising new market for industrial companies, investors and the service sector in the country, and giving exporters an important platform to expand globally. Cambodia's food production and agriculture sectors, which are an important part of its economy, will also help achieve the UAE's food security targets.

His Excellency pointed out that the talks aimed at reaching the comprehensive economic partnership agreement between the UAE and Cambodia took only several months, which confirms the mutual desire between the two friendly countries to upgrade bilateral relations and create new opportunities that achieve the aspirations and interests of both parties.

For his part, HE Ban Surasak stressed the importance of the promising prospects of the Comprehensive Economic Partnership Agreement between the UAE and Cambodia, noting that this agreement is in line with Cambodia's firm commitment to trade liberalization.

"We believe that this agreement will certainly be an additional major driver of the shared growth and prosperity of the two countries, by strengthening supply chains, stimulating trade flows, encouraging bilateral investment between Cambodia and the UAE, and serving as a catalyst for further trade and investment communication between the Association of Southeast Asian Nations (ASEAN) and the Arab world, which is among the most economically vibrant regions in the world.

The Cambodian economy is promising in Southeast Asia, with growth in 2022 of 5.1 percent, and the agreement will open up new opportunities for Cambodia's main exports, which include grains, fruits, meat, processed foods, clothing, footwear and leather goods. The UAE is seeking to expand its exports of machinery, oils, lubricants, automobiles and auto parts, as well as creating opportunities for investment in logistics, infrastructure, travel and tourism projects and renewable energy.

The Government of the Kingdom of Cambodia supports the trend towards globalization through the liberalization of international trade to ensure that cooperation is at the heart of sustainable and inclusive economic development. To this end, Cambodia has concluded two free trade agreements with China and South Korea, as well as an expanded free trade agreement within the framework of the Association of Southeast Asian Nations (ASEAN) known as the Regional Comprehensive Economic Partnership (RCEP).

It is noteworthy that the UAE continues to expand its network of trading partners around the world, through the conclusion of comprehensive economic partnership agreements, as part of its plans to double its foreign trade and the size of the national economy by 2030. The UAE has so far concluded 4 agreements with India, Israel, Indonesia and Turkey, the first and second agreements have already entered into force, and the country continues its talks to reach similar agreements with strategically important markets regionally and globally in the coming weeks on the global trade map.