Other BriefingsAustralia-UAE Comprehensive Economic Partnership Agreement (CEPA): Key Provisions and Sectoral Implications
The Australia–UAE CEPA unlocks new commercial potential across agriculture, manufacturing, services, and innovation by eliminating tariffs, expanding market access, and strengthening investment and IP protections.
The Comprehensive Economic Partnership Agreement (CEPA) between the United Arab Emirates (UAE) and Australia, which entered into force in October 2025, represents a significant upgrade in the bilateral economic relationship and a milestone in the UAE’s broader CEPA program.
As Australia’s first trade agreement with a Middle Eastern partner and a key pillar of the UAE’s diversification and global market integration strategy, the deal is expected to reshape trade, investment, and sectoral cooperation between the two economies. It introduces wide-ranging tariff reductions, expands market access for goods and services, and establishes frameworks to support investment, innovation, and regulatory cooperation.
The agreement has generated notable attention among industry stakeholders and trade promotion agencies, reflected in increased activity on LinkedIn and a series of sector-focused discussions and briefings circulated by government and business networks. This interest is driven by the CEPA’s potential to unlock new opportunities for Australian exporters, particularly in agrifood, healthcare, education, renewable energy, and professional services, while supporting the UAE’s ambition to position itself as a high-value hub for advanced industries, food security, and global logistics.
In this article, we outline the key provisions of the UAE–Australia CEPA and examines the agreement’s implications across priority sectors, offering businesses a clearer understanding of where the most immediate and strategic opportunities are emerging.
Strategic objectives of the AU–UAE CEPA
Enhance bilateral trade flows and improve market access for goods and services
One of the core objectives of the CEPA is to drastically reduce, and in many cases eliminate, tariffs on trade between Australia and the UAE. Under the deal, over 99 per cent of Australian goods exports to the UAE by value will be tariff-free upon full implementation.
This broad liberalization covers a wide range of sectors, from agriculture (dairy, red meat, pulses, horticulture) to industrial goods (aluminium, vehicle parts, pharmaceuticals, cosmetics, jewellery, among others).
Moreover, CEPA extends beyond goods: it includes liberalization and commitments on services, covering more than 120 sectors and subsectors in the UAE, such as professional services (legal, accounting, medical), business services, financial services, health services, distribution, communications, and more.
Promote investment, innovation, and technology transfer across key sectors
Beyond tariff reductions and market access, CEPA establishes a framework that supports increased cross-border investment and deeper economic cooperation. According to public assessments, the deal paves the way for cooperation in sectors such as renewable energy, digital infrastructure, advanced manufacturing, and services, areas where innovation and technology transfer can be central.
CEPA also includes a chapter on intellectual property (IP), strengthening protection and enforcement standards, which offers a stable environment for creative industries, technology, and innovation-driven businesses on both sides.
By setting up a stable, rules-based partnership that covers trade, investment, services, IP, and digital trade, the agreement seeks to foster longer-term collaboration and innovation, rather than just transactional trade flows.
Support diversification of trade and export-driven growth
For Australia, CEPA represents a major push to diversify export destinations and reduce dependency on traditional markets. The removal of tariffs and opening of services sectors can help Australian exporters, from farmers to high-tech firms, access a wealthy, strategically positioned market.
On the UAE side, the deal supports the country’s broader strategic ambition to diversify its economy away from oil dependence. By formalizing trade and investment ties with a resource-rich, developed economy like Australia, the UAE strengthens its credentials as a global trade hub, while also attracting quality imports in food, resources, technology, and services.
Strengthen the UAE’s role as a global logistics, re-export and trade hub
A strategic rationale underpinning the CEPA is the complementary positioning of each partner: Australia as a major exporter of agricultural, mineral and manufactured goods; the UAE as a global logistics, transport, and re-export hub. Under CEPA, Australian exporters gain privileged access not only to UAE consumers, but also to the broader Middle East, North Africa, and possibly other international markets reachable via the UAE’s global trade networks.
Key sectors impacted by the CEPA
Agrifood and agriculture
Agriculture is one of the clearest beneficiaries of the CEPA. The agreement eliminates tariffs on a wide catalogue of Australian agricultural products exported to the UAE, including, among others:
- Dairy;
- Frozen beef and sheep meat;
- Grains;
- Pulses;
- Canola;
- Horticultural goods; and
- Honey.
For a market like the UAE, where domestic production is limited by climate and water constraints, this tariff removal directly enhances the cost-competitiveness of Australian products and positions them as reliable supply sources in a food-import-dependent economy.
The tariff-free environment is expected to incentivize Australian agribusinesses to scale exports and develop long-term supply programs for the UAE’s expanding food and hospitality sector. On the UAE side, the agreement aligns with national food-security strategies by diversifying import streams and reducing exposure to global price volatility. For both countries, the CEPA therefore supports a more predictable, sustainable agricultural trade ecosystem.
Manufacturing, industrial goods and value-added production
Beyond agriculture, the CEPA offers extensive benefits to Australia’s industrial and manufacturing base. A wide selection of non-agricultural goods, including alumina and aluminium products, vehicle components, cosmetics, jewellery, pharmaceuticals, and ceramics, will see tariffs cut immediately or phased down over short transition periods.
These changes remove a long-standing cost barrier for exporters and make Australian manufacturing more competitive in the UAE and the broader Gulf region, where the UAE often serves as a conduit for re-exports into neighbouring markets. Tariff reductions on industrial inputs and finished goods are therefore expected to stimulate opportunities across downstream value-addition, processed manufacturing, and specialised industrial supply chains.
Services, digital trade, innovation and IP-sensitive industries
The CEPA introduces one of the most ambitious services and investment chapters in any Australian trade agreement, opening market access across more than 120 services subsectors, ranging from legal, financial, and consulting services to education, health services, ICT, and creative industries.
For innovation-driven industries, the agreement provides strengthened protections for intellectual property, trademarks, patents, and technology transfer frameworks. These measures not only reduce entry-risk for Australian firms seeking to deploy proprietary technologies in the UAE, but also support the development of cross-border digital trade, fintech, clean-technology solutions, and biotechnology partnerships.
Similarly, the UAE’s policy shifts toward high foreign-ownership allowances in strategic sectors complement CEPA’s market-access provisions, enabling professional service providers (from architects and engineers to legal and consulting firms) to expand operations or establish collaborative ventures with UAE-based partners.
Infrastructure, logistics and trade facilitation
The UAE’s position as a global re-export and logistics hub is a central pillar of CEPA’s design. The agreement capitalizes on this strategic advantage, providing mechanisms that allow Australian exporters to not only target the UAE market but also use the country as a launchpad into the broader Middle East, North Africa, and South Asia region.
CEPA’s trade-facilitation provisions (including more predictable rules of origin, enhanced customs cooperation, and streamlined border procedures) lower transaction costs and reduce administrative barriers for both goods and services. As a result, exporters adopting multi-market distribution strategies stand to benefit significantly from the UAE’s infrastructure, warehousing, and advanced supply-chain capabilities.
Investment, joint ventures and long-term cooperation in energy and advanced sectors
The CEPA goes beyond traditional tariff and services liberalization by including a suite of investment-focused commitments, side letters, and MOUs covering areas such as food and agriculture, renewable and green energy, infrastructure development, minerals, and critical enabling technologies. These frameworks open the door for long-term cooperation between Australian firms and UAE investors, particularly in sectors aligned with both countries’ economic diversification strategies.
The agreement is expected to catalyze new joint ventures across renewable energy projects, hydrogen production, climate-tech solutions, sustainable agriculture systems, and high-tech manufacturing. CEPA’s investment protections and regulatory transparency provide confidence for both institutional and private investors, thereby improving the viability of large-scale project development in areas requiring stable cross-border governance.
Special focus: Indigenous and niche exporters
A distinctive element of the CEPA is its “First Nations Trade and Investment Economic Cooperation” chapter: the first of its kind in any Australian trade agreement. Through this mechanism, the agreement seeks to promote Indigenous-owned enterprises, bolster participation in export markets, and create new pathways in sectors such as creative industries, sustainable agriculture, cultural products, and green-economy technologies.
For Indigenous and small-scale exporters, CEPA offers an opportunity to engage a high-value market under more favourable and predictable conditions. Over time, this is expected to encourage greater diversification in Australia’s export base, not just in terms of products, but also in the profile of participating businesses and communities.
Why these sectoral impacts matter
Taken together, the sectoral advantages unlocked by CEPA signal a transformative shift in Australia’s trade architecture with the Gulf region. The removal of tariffs on more than 99 percent of Australian exports significantly reduces cost barriers and enhances competitiveness in a fast-growing, high-income market. For exporters, manufacturers, investors, and service providers, the agreement introduces a stable and transparent regulatory framework encompassing rules of origin, investment protections, IP standards, and streamlined trade procedures.
Importantly, the UAE’s role as a regional logistics centre amplifies CEPA’s benefits beyond the bilateral relationship: Australian firms can leverage UAE infrastructure and re-export channels to connect with wider markets across the Middle East and North Africa. For technology-focused industries, CEPA’s digital-trade and IP-protection provisions enable the development of cross-border innovation ecosystems, joint ventures, and long-term partnerships.
Finally, the inclusion of dedicated opportunities for First Nations businesses adds a socio-economic dimension that goes beyond pure commercial gain, supporting a more inclusive and resilient export landscape.
Business opportunities and early market signals
Early commentary from business communities and exporters highlights optimism: with CEPA’s entry into force, many Australian agrifood producers (meat, dairy, pulses, grains) are reportedly preparing to scale up exports to meet UAE demand.
Moreover, for manufacturing and industrial exporters (such as, aluminium, vehicle parts, cosmetics, jewellery, pharmaceuticals), the tariff elimination immediately improves cost competitiveness, which may translate into increased orders, new supply-chain arrangements, and long-term contracts.
On the services/digital side, some firms active in fintech, ICT, professional services and creative industries are reportedly exploring establishing a UAE presence or partnership to capitalize on regulatory stability, IP protections and market access under CEPA.
Meanwhile, investors and development-oriented businesses are showing interest in potential joint ventures in areas like renewable energy, green-economy infrastructure, and sustainable agriculture, leveraging CEPA side-letters on investment cooperation.
Challenges and considerations
Of course, while the opportunities are wide, there are also challenges and important caveats; businesses need to carefully assess them.
- Goods and services must meet the agreement’s ROO criteria to qualify for preferential tariff treatment. Companies must ensure their supply-chains and production meet origin requirements; otherwise, standard tariffs may still apply.
- For services and investment, regulatory, cultural, market-entry differences remain. Even with formal liberalization, practical barriers (licensing, localisation requirements, compliance, local partnerships) may pose hurdles — especially for smaller firms or SMEs.
- While the UAE is a key hub, re-exporting to wider Middle East/North Africa depends on logistics, demand, and distribution networks; success is not automatic. Exporters must build relationships with local distributors, understand regional market dynamics, and manage supply-chain risks.
- For sectors like renewable energy or infrastructure investment, large-scale projects require capital, long-term commitment, and risk mitigation; good regulation and stable business environment are necessary, but not sufficient.
- For niche or smaller exporters (e.g. First Nations businesses, SMEs), market entry will still require capacity building, understanding of regulatory and certification requirements (including food safety, quality standards, packaging, labeling), and possibly adaptation to local consumer preferences.
What the CEPA Means for 2025–2026 and beyond
The Australia–UAE CEPA represents a watershed moment for bilateral trade and economic cooperation. By eliminating tariffs on almost all goods exports, liberalizing services, strengthening investment and IP protections, and leveraging the UAE’s strategic geographic and logistics hub role, the agreement opens up a broad range of practical, near-term opportunities, especially in agrifood, manufacturing, services, and trade facilitation.
But beyond immediate gains, CEPA lays the groundwork for longer-term structural shifts: deeper supply-chain integration, joint ventures, technology transfer, and a diversified export base that goes beyond commodities, including high value-added goods, services, and innovation-driven sectors.
For businesses and investors willing to navigate complexity (in compliance, supply-chain management, market entry, and partnerships) the 2025–2026 period may be critical to position themselves early and capture the first-mover advantages.
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