Japan, UAE Launch Talks for New Trade Agreement To Boost Economic Ties
Japan and the United Arab Emirates announced on Wednesday the launch of negotiations for a comprehensive economic partnership agreement (Cepa). The move is part of both nations’ broader efforts to strengthen trade ties and promote sustainable economic growth. Japanese Prime Minister Fumio Kishida and UAE President Mohamed bin Zayed Al Nahyan both confirmed the development on social media, highlighting the historic cooperation between the two countries.
In parallel with these discussions, Japan is also working on a free trade agreement with the Gulf Cooperation Council, which includes the UAE. Together, these agreements are expected to boost trade and investment in key sectors such as energy, technology, and advanced manufacturing.
The UAE is Japan’s leading trade partner in the Arab world, accounting for 40% of Japan’s exports to the region. Non-oil trade between the two nations reached $8.1 billion in the first half of 2024. The agreement aims to reduce tariffs and enhance market access for businesses, contributing to both countries’ economic growth.
The economic relationship between the UAE and Japan dates back several decades and has steadily evolved into a robust partnership. Japan has long been a significant importer of oil from the UAE, with energy cooperation forming the backbone of their early ties. Over the years, this partnership has expanded beyond oil to include additional sectors, including technology, renewable energy, and advanced manufacturing.
In 2022, Japan and the UAE signed several agreements focusing on energy security, climate change, and investment in high-tech industries like semiconductors and batteries. The UAE, in turn, has become a key market for Japanese exports, with Japan ranking among the UAE’s top 10 global trading partners.
