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UAE and Thailand Signs An Economic Partnership Agreement

May 12, 2023 - 05:26 AM Author - Axios Credit Bank


The United Arab Emirates (UAE) and Thailand have agreed to start discussions to form a Comprehensive Economic Partnership Agreement (CEPA) between the two nations, according to a joint statement remarked by Thani bin Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade, and Jurin Laksanawisit, Deputy Prime Minister and Minister of Commerce of Thailand. 

The primary round of talks will start in the UAE on 16 May, addressing another significant stage in the UAE's development plan and underlining the nation’s role as a key enabler of global trade. In past years, ECI introduced the UAE trade finance gateway to simplify credit access to SMEs.

Al Zeyoudi featured the emerging relationship between the UAE and Thailand, stressing that the negotiations were a characteristic movement following the introduction of the first UAE-Thai Business Council in February 2023. He likewise noted that Thailand is an increasingly vital trade and investment associate for the UAE, with an advanced administration sector that aids 58.3% of the nation’s GDP. A UAE-Thailand CEPA will expand on the quickly increasing non-oil trade between the two nations by 21% in 2022 to reach $6.1 billion. Sectors like Tourism, food security, IT, Logistics, and financial services are supposed to benefit from the arrangement.

Thailand's economy is projected to develop by 3.8% in 2023, driven by the bounce back in the country's imperative tourism sector. The UAE’s prime exports to Thailand are ethylene polymers, gold, vegetable residues, delivery vehicles and parts, and electric batteries, while Thailand’s prime exports are office machinery and parts, motor vehicle parts, tires, and aluminum plating.

The UAE has executed four CEPAs with India, Israel, Indonesia, and Turkey, with the first two currently in force and the marking of the other two arrangements expected later. The UAE is currently discussing with other markets of key significance at the local and worldwide levels to lay out comparable arrangements.