The economic partnership between the United Arab Emirates and the Eurasian Economic Union has taken a significant step forward with the recent signing of an agreement in Minsk. This collaboration is set to elevate trade between these regions, marking a pivotal moment in economic relations and underscoring the shared goals for mutual benefits.
Details of the Agreement
During the summit of the Eurasian Economic Council held in Minsk, Moscow announced the signing of an economic partnership agreement between the Eurasian Economic Union and the United Arab Emirates. This agreement is expected to be a landmark achievement in enhancing commercial ties, with trade volume projected to reach a new qualitative level of $20 billion.
Impact on Trade Dynamics
A statement from the Russian embassy in Cairo highlighted that over 98% of current exports from both regions, valued at more than $12.1 billion, will benefit from preferential coverage under this agreement. As a result of trade liberalization, the average rate applied by the UAE to goods from the Eurasian Economic Union will drop from 5% to an impressive 0.6%.
Projected Savings and Market Access
The annual savings in customs duties on imports following the agreement are estimated to exceed $260 million. Additionally, key agricultural commodities from the Eurasian Economic Union, including grains, meats, eggs, vegetable oils, and dairy products, will gain preferential market access. This trade enhancement will also extend to industrial goods, electrical equipment, vehicles, chemicals, and pharmaceuticals.
Benefits for UAE Consumers
Moreover, the United Arab Emirates stands to enhance its supply of a diverse range of consumer goods, including cosmetics, perfumes, watches, and certain types of clothing, thereby enriching the market offerings for consumers in the UAE.