Mozambique and UAE negotiate creation of free trade area

Login

Register

http://www.clubofmozambique.com/

Mozambique and UAE negotiate creation of free trade area

5:35 CAT | 18 Jul 2023

FILE - For illustration purposes only. [File photo: Emirates News Agency]

Mozambique and the United Arab Emirates (UAE) are negotiating a Comprehensive Economic Partnership Agreement (CEPA), creating a free trade area for goods, services and investment, the UAE Embassy in Maputo announced on Monday.

In a statement, the Embassy of the United Arab Emirates said that the two countries are working on the “removal of trade and investment barriers in a wide range of goods and services with a view to promoting non-petroleum bilateral trade between the two”.

“For this purpose, the Embassy of the United Arab Emirates in Mozambique has added advantages to economic partnerships through ongoing negotiations which could culminate in the coming months with the signing of the Comprehensive Economic Partnership Agreement (CEPA) which covers several economic areas that have as a vision the establishment of a Free Trade Area that attracts opportunities for access to markets for goods, services and investment between the parties,” the statement reads.

The UAE Embassy adds that enhanced economic integration between the two countries “will bring business opportunities particularly for importers and exporters on both sides”, representing “mutual benefits, taking into account the strategic, geographical and logistical position of the United Arab Emirates on the one hand, and on the other, the vast natural and human resources – with an emphasis on agriculture – that Mozambique has”.

“With the signing of the joint declaration of intentions for the launch of CEPA negotiations, the UAE undertakes to strengthen its long-term economic partnership with Mozambique”, the statement continues.

This is an understanding based “on mutual interests” that “will establish stronger strategic cooperation and promote innovation in addition to stimulating economic growth and creating job opportunities in both countries”.

According to the UAE Embassy, the volume of its trade with Mozambique between 2010 and 2021 reached US$3,700 million (3,295 million euros). Of this total, 1,500 million dollars (€1,335 million) was in direct investment.

“In general, the CEPA will further enhance trade and investment between Africa and the Middle East,” the embassy writes.

“There are several opportunities for closer economic integration between the two countries, especially in the areas of agriculture, tourism, infrastructure, technology and renewables, at a time when an increasing number of Mozambican entrepreneurs are eager to establish businesses in Dubai, where they will certainly have the support of the necessary consultancy services,” it explains.

In 2021, the United Arab Emirates ranked among the 20 largest recipients of foreign direct investment, with an annual increase of 4%, to US$20.7 billion (€18.4 billion).

Mozambique “is among eight countries with which the United Arab Emirates intends to deepen and strengthen commercial ties through its strategic market”.

The announcement of the intention for a CEPA between the UAE and Mozambique “reflects the commitment with a view to achieving greater economic progress through trade and investment”, the statement stresses.

Source: Lusa