ALMOST all tariffs on Australian exports to the United Arab Emirates will be gone as of Wednesday, October 1, as a new free trade agreement (FTA) kicks in.
Under the $12.3 billion FTA, more than 99% of Australian exports to the UAE will be duty free, saving $185 million in just the first year.
Prime Minister Anthony Albanese says the FTA creates new export opportunities and more jobs for Australia.
“Our first trade deal in the Middle East provides Australian businesses with a competitive advantage in this fast-growing region,” he says.
“More trade means more opportunities for economic growth.”
He also points out that the UAE will serve as a gateway to the Middle East.
“As an important global logistics centre and hub, the UAE will serve as a gateway for Australia’s exports to the broader region and beyond,” he says.
The federal government says the UAE is Australia’s largest trade and investment partner in the Middle East with over $12.3 billion in trade last year; they are Australia’s largest beef market in the Middle East and the fourth largest market for sheep meat.
The government expects to see an extra $678 million in exports to the UAE every year as a result of the new FTA, resulting in a deal worth $12.98bn.
In return, the agreement is expected to help attract some of the largest sovereign wealth funds in the world to invest in Australia including in renewable energy, digital infrastructure, agriculture and minerals.
Trade and Tourism Minister Don Farrell says the FTA “delivers” for Australian businesses, consumers and the economy.
“The removal of tariffs on key exports to the UAE opens more opportunities for businesses and creates more high-paying local jobs for Australian workers,” he says.
UAE DEAL’S BENEFITS
Farmers exporting to the UAE directly will see import tariffs in the UAE lifted and preferential access to key markets as of October 1.
Examples of trade benefits include:
- Tariffs on all dairy products to go.
- Duties on frozen red meat exports to go.
- Tariffs on bottled and sparkling wine to fall by 5% (to 45%).
- 5% tariff on canola seeds to go as will tariffs on other grain and oilseed.
- A 5% tariff on pulses will go.
- A 5% tariff on horticultural exports to be lifted.
- A 5% duty on honey will be gone.
Industry will also benefit with tariffs on some products eliminated from October 1 and others to be phased out. Examples (to take effect from October 1 unless stated otherwise) include:
- Aluminium: many duties will go; others will be phased out over three to five years.
- Gold: a zero lock on tariffs to prevent a return to the previous 15% rate.
- Vehicle parts: tariffs to go immediately or over three years.
- Pharmaceuticals: a zero lock on
- Cosmetics: all duties eliminated.
- Jewellery: most tariffs lifted with some to be phased out over three years.
Source: Department of Foreign Affairs and Trade. Click here for even more details of the new deal.
OTHER DUBAI NEWS: New hotel tower to feature high-rise infinity pool
