UAE–Australia Comprehensive Economic Partnership Agreement 2025 explained

Khoshnaw Rahmani, Jadetimes Staff

K. Rahmani is a Jadetimes news reporter covering politics.

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Image Source: CEPA

Entry into force and why it matters

On 1 October 2025, the Comprehensive Economic Partnership Agreement (CEPA) between the United Arab Emirates (UAE) and Australia officially entered into force, marking Australia’s first free trade agreement with a Middle Eastern nation and ushering in a new era of trade, investment, and services cooperation between the Gulf and the Pacific. Implementing legislation passed in Australia in August 2025, clearing the way for the agreement to take effect; both CEPA and the parallel Investment Agreement now provide a long-term framework to deepen economic ties. With CEPA in force, both governments project substantial growth: bilateral trade is targeted to rise from roughly US$ 4.2 billion in 2024 to more than US$ 10 billion by 2032, supported by reduced barriers, expanded market access, and stronger investor confidence.

Inside the agreement: scope, benefits, and what’s new

Architecture and core chapters

CEPA establishes a free trade area consistent with WTO rules and is organized across 26 chapters, including trade in goods, rules of origin, customs procedures, trade remedies, SPS and TBT disciplines, services, entry and temporary stay for business persons, investment facilitation, digital trade, competition and consumer protection, intellectual property, government procurement, SMEs, environment and net-zero transition, labour, gender and women’s economic empowerment, Indigenous Peoples trade and investment, transparency and anti-corruption, institutional provisions, general exceptions, and dispute settlement (with detailed panel rules and a code of conduct). Annexes cover tariff schedules, product-specific rules of origin, financial services, telecommunications, government procurement schedules, and more.

Goods market access and tariff outcomes

• Tariff elimination on over 99% of Australian exports: Most tariffs are eliminated or bound at zero upon entry into force, with remaining lines phasing out over three or five stages. Priority sectors include red meat, dairy, wine, grains and oilseeds, pulses, horticulture, honey, alumina/aluminium, gold, vehicle parts, pharmaceuticals, cosmetics, and jewellery.

  
  

• Immediate savings and consumer impact: Australian households and businesses are expected to benefit from lower prices via tariff reductions and improved supply chain efficiency; Australia’s government estimates tariff savings of A$ 135 million in year one, rising to A$ 160 million annually once fully implemented.

Services access and certainty

• Improved certainty for providers across 120+ sectors: Professional services, financial services, and education are highlighted as areas where Australian firms gain clearer, more predictable access under the UAE regime, supported by commitments and transparency on domestic frameworks.

  
  

• Labour mobility for business persons: Dedicated commitments on entry and temporary stay facilitate talent movement and short-term assignments, helping firms scale teams and projects in-market.

Investment facilitation and protection

• Parallel Investment Agreement: The Investment Agreement promotes and protects two-way investment flows, with shared priority sectors in renewable energy, food and agriculture, infrastructure, AI and data centres, and critical minerals.

  
  

• Institutional mechanisms: CEPA creates committees and contact points to monitor implementation, resolve issues, and expand cooperation over time.

First-of-its-kind inclusions

• Indigenous Peoples chapter: CEPA includes Australia’s first standalone chapter on First Nations trade and investment, recognizing Indigenous businesses’ role and fostering bilateral cooperation—an unprecedented feature in Australian trade agreements.

  
  

• Sustainability and inclusion: Chapters on environment and net zero, trade and labour, gender balance and women’s economic empowerment, and SMEs aim to embed inclusive and sustainable growth throughout the trade relationship.

Customs, origin, and compliance

• Claiming preference: Australian importers/exporters can claim preferential tariffs through the Integrated Cargo System (ICS), using origin declarations and certificates in line with CEPA rules. Guides cover origin waivers (including benefits for Australian Trusted Traders), refunds, and rulings on origin advice; product-specific rules of origin are published to support compliance.

  
  

• Trade facilitation: Customs procedures emphasize transparency and predictability, reducing clearance times and administrative costs for traders.

Negotiation journey and policy context

• Talks launch and conclusion: Negotiations commenced on 13 December 2023 and concluded on 17 September 2024, reflecting a rapid yet comprehensive process driven by mutual economic priorities.

  
  

• Signature and ratification: The agreements were signed on 6 November 2024; Australia’s implementing legislation received Royal Assent on 2 August 2025, enabling entry into force on 1 October 2025.

  
  

• Strategic partnership: On 29 September 2025, leaders elevated bilateral ties to a Strategic Partnership, framing CEPA and the Investment Agreement as cornerstone instruments for supply chain resilience, market access, and inclusive prosperity.

UAE–Australia relations: a concise history and long arc of cooperation

Diplomatic foundations and people-to-people ties

Formal diplomatic relations were established in 1975, growing steadily through the establishment of missions (UAE in Canberra; Australia in Abu Dhabi with a consulate-general in Dubai), expanding aviation links, and increasing student flows and tourism over subsequent decades. Education has been a pillar: thousands of Emirati students have pursued degrees in Australian universities, often on government scholarships, strengthening cultural understanding and professional networks across both countries8. Consular cooperation has matured via a joint committee with regular sessions—most recently the 10th session held in Canberra in May 2025—reflecting robust coordination on citizen services and mobility.

High-level engagement and economic integration

Senior visits—such as UAE foreign ministerial trips and Australian prime ministerial and governor-general engagements—have punctuated the relationship, culminating in 2024–2025 milestones linked to CEPA and its implementation. Throughout 2024–2025, both sides underscored shared priorities in trade diversification, logistics connectivity, air links, and investment in advanced sectors, aligning CEPA with broader strategies for sustainable, inclusive growth and multilateral system support.

Strategic elevation

In 2025, as the two countries marked 50 years of diplomatic relations, leaders elevated ties to a Strategic Partnership, situating CEPA within a broader agenda that includes renewable energy, critical minerals, agriculture and food security, AI, data centres, education, and research cooperation—while affirming commitments to tolerance, peaceful coexistence, and WTO reform.

Sectoral impacts: where businesses gain

• Food and agriculture: Reduced tariffs and clearer SPS frameworks ease access for meat, dairy, grains, pulses, and horticulture, supporting food security partnerships and diversified sourcing strategies.

  
  

• Energy and critical minerals: Investment facilitation accelerates joint projects in renewables, hydrogen, grid modernization, and mineral supply chains, leveraging CEPA’s cooperation chapters and the Investment Agreement’s protections.

  
  

• Education and professional services: Market certainty, labour mobility provisions, and digital trade rules help universities, consultancies, and financial firms scale offerings in the UAE, with smoother cross-border delivery and credential recognition pathways.

  
  

• Advanced technology and digital: Commitments on digital trade, consumer protection, and competition enable data-intensive business models and AI partnerships, anchored by predictable rules and pro-innovation standards.

How the UAE–Australia CEPA compares to other UAE trade agreements

The UAE’s CEPA program is a cornerstone of its economic strategy—targeting US$1 trillion in total trade by 2031 and expanding access to key markets. The UAE–Australia CEPA joins a portfolio of concluded agreements and stands out for its design and inclusiveness.

• Unique feature: Australia’s CEPA includes the first standalone chapter on First Nations trade and investment in any Australian FTA, reflecting a distinctive social inclusion dimension compared with typical market-access-focused agreements.

  
  

• Common pillars: Like other UAE CEPAs, the agreement emphasizes tariff elimination, services openness, investment facilitation, digital trade, and stronger regulatory cooperation—core building blocks that the UAE uses to integrate global value chains and position itself as a logistics and innovation hub.

  
  

• Program scale and ambition: The UAE underscores CEPA as a vehicle for doubling the economy size and scaling non-oil trade through 2031, aligning with diversified partnerships across Asia, MENA, and beyond; Australia’s entry is a major Indo-Pacific link in this network.

Sources for comparison context: UAE CEPA program scope and targets.

Practical steps for traders and investors

• Claim preferences: Use ICS to lodge origin declarations and claim CEPA tariff preferences; refer to guides on refunds, waivers (including for Australian Trusted Traders), and rulings for origin advice.

• Verify origin: Apply CEPA product-specific rules of origin (Annex 3A) and minimum information requirements for origin documentation (Annexes 3B–3C) before shipment.

• Leverage services access: Map commitments in services schedules and annexes (financial services, telecoms) to your offerings; engage with Austrade for sector-specific pathways and contacts.

• Use investment protections: Align projects in priority sectors with the Investment Agreement and CEPA cooperation chapters to streamline approvals and safeguard capital.

Timeline: five decades to CEPA implementation

• 1975: Formal diplomatic relations established.

• 2010: Intensified high-level engagement; UAE foreign minister’s official visit helps institutionalize cooperation.

• 2011–2019: Expanding aviation links, student exchanges, and trade flows deepen the relationship.

• 13 Dec 2023: CEPA negotiations commence.

• 17 Sep 2024: Negotiations conclude.

• 6 Nov 2024: CEPA and Investment Agreement signed.

• 31 Jul 2025: Australia’s government announces CEPA legislation passage toward implementation.

• 2 Aug 2025: Implementing legislation receives Royal Assent in Australia.

• 29 Sep 2025: Leaders elevate ties to a Strategic Partnership.

• 1 Oct 2025: CEPA enters into force; trade targets and program ambitions publicized.

Frequently asked questions

• Is CEPA Australia’s first FTA in the Middle East? Yes. It is Australia’s first free trade agreement with a country in the Middle East/North Africa region.

  
  

• How big is the current trade and investment relationship? Two-way trade in 2024 was A$ 12.3 billion, with two-way investment stock at A$ 23.7 billion, making the UAE Australia’s largest trade and investment partner in the Middle East.

  
  

• What are the headline tariff outcomes? Over 99% of Australian exports gain tariff-free or bound-zero access, with phaseouts for remaining lines over three or five stages.

  
  

• Where can I find the legal text? The official CEPA text and annexes are available from UAE and Australian government sources, including tariff schedules, origin rules, services commitments, and dispute settlement procedures.

A bridge between the Gulf and the Pacific

The UAE–Australia CEPA 2025 is more than a trade deal; it’s a strategic bridge connecting two dynamic regions with complementary strengths in logistics, resources, education, technology, and sustainability. By combining deep market access, modern digital and sustainability chapters, robust investment protection, and a first-of-its-kind Indigenous Peoples framework, the agreement sets a high bar for inclusive, future-ready economic integration. As businesses lean into the opportunities—from food security to clean energy and advanced services—CEPA provides the predictability and ambition required to translate intent into long-term growth.