UAE and Thailand have signed a joint statement, paving the way for negotiations on a Comprehensive Economic Partnership Agreement (CEPA) between the two nations. The inaugural round of talks is scheduled to commence in the UAE on May 16.
This landmark decision to establish a CEPA highlights the deepening ties between the UAE and Thailand, following the recent establishment of the first UAE-Thai Business Council in February 2023. The agreement aims to bolster bilateral trade and investment by creating new prospects across multiple sectors, including tourism, food security, IT, logistics, and financial services.
Of particular significance is the thriving trade relationship between the UAE and Thailand in the textile and garment sector. Both countries have been actively involved in exporting and importing textile products to meet their respective domestic demands as well as for international trade. The CEPA negotiations seek to further enhance bilateral trade, encompassing various sectors such as textiles and garments.
Underlining the importance of these negotiations is the UAE's growth agenda, which seeks to reinforce its position as a key facilitator of global trade, as well as Thailand's robust economy. Thailand, Southeast Asia's second-largest economy, is projected to experience a 3.8 percent growth in 2023, primarily driven by the recovery of its crucial tourism sector. With its well-developed services sector contributing 58.3 percent to its GDP, Thailand presents a promising market for economic collaboration.
The non-oil trade between the UAE and Thailand has witnessed substantial growth, surging by 21 percent in 2022, reaching a total of US$6.1 billion.
These negotiations with Thailand represent the latest significant achievement in the UAE's ambitious foreign trade agenda, which aims to double the country's foreign trade and national economy by 2031. Presently, the UAE has already concluded CEPA agreements with India, Israel, Indonesia, and Turkey, with the former two already in effect and the remaining agreements set to be signed in the near future.
The UAE is actively engaged in discussions with other strategically important markets, both regionally and globally, with the goal of establishing similar agreements that will further foster economic cooperation.
