Australia – UAE Closer Economic Partnership Agreement has commenced

In earlier commentaries regarding Australia’s FTA deal with the UAE, we provided details of earlier stages of the introduction of the Australia – UAE Comprehensive Economic Partnership Agreement (Australia – UAE CEPA) here.

Following the passage of relevant legislation and other necessary implementation steps, the Australia – UAE CEPA came into effect on 1 October 2025.

The commencement of the Australia – UAE CEPA comes at a welcome time when the global trade agenda has been compromised by the adverse effects of new US tariffs, both reciprocal and sectoral.  It is also timely as the New Zealand – UAE Comprehensive Economic Partnership Agreement came into effect on 28 August 2025.

As stated on the DFAT website page, ‘Outcomes at a Glance’, the benefits of the Australia – UAE CEPA are as follows:

• Tariffs eliminated on over 99 per cent of Australia’s exports to the UAE by value, with most tariffs eliminated on entry-into-force or locked in at zero and others eliminated over three or five years.
• For agricultural products, tariffs eliminated on key Australian exports to the UAE, except for culturally and religiously sensitive goods.
• For industrial goods, immediate elimination of tariffs on exports of aluminium oxide, vehicle parts, and cosmetics.
• UAE market access commitments in more than 120 services sectors and subsectors, 60 more than in the WTO, covering professional services, R&D services, financial Services, health services, education devices, environmental services
• High-quality rules to address behind-the-border barriers to services trade.
• Commitment to allow full Australian ownership for services firms in selected sectors.
• Support for mobility of business persons between Australia and the UAE with commitments on intra-corporate transferees, contractual service suppliers and business visitors.
• A Council on Investment to facilitate investment for priority sectors to support Australia’s clean energy transition and Future Made in Australia agenda.
• Five Investment Cooperation MOUs in sectors of national priority: Green and Renewable Energy; Data Centres and Artificial Intelligence Projects; Food and Agriculture; Minerals; and Infrastructure Development.
• Investment protections for Australian businesses and non-discrimination provisions in a standalone Investment Protocol
• No Investor-State Dispute Settlement provisions.
• Digital trade rules benefiting Australian businesses, workers and consumers covering data flows and data localisation, source code and cryptography, acceptance of electronic trade documents, e-signatures, e-payments, and e-invoicing.
• A prohibition on customs duties on electronic transmissions.
• Modern, flexible and trade-facilitating outcomes on Rules of Origin, complemented by the inclusion of streamlined Customs cooperation.
• Government Procurement outcomes that provide Australian suppliers with access to the UAE market for the first time, and commensurate access for UAE suppliers.
• Intellectual Property outcomes that encourage innovation and creativity and promote effective and balanced protection of IP rights.
• It maintains Australia’s ability to take measures to protect public health and promote access to medicines for all.
• Australia’s first FTA to include a First Nations Peoples chapter, covering business networks, investment, traditional knowledge, digital trade, agriculture and environment.
• UAE’s first dedicated chapter covering trade and labour
  • promoting compliance with ILO standards and enforcement of labour laws
  • establishing a Dialogue on Labour to advance Labour Rights, including through engaging with stakeholders
  • promoting cooperation on labour matters of mutual interest.
• Dedicated chapter on environment and the transition to net zero.
• Dedicated chapter covering trade, gender balance and women’s economic empowerment.
• Framework for supporting Micro, Small and Medium Sized Enterprises (MSMEs) in securing benefits from the agreement.
• Rules covering transparency and fairness, consumer protections and State Owned Enterprises.

More details of the key benefits for Australia can be found on the DFAT website.

Technical details on the implementation and use of the CEPA, including product-specific rules of origin, how to claim preferential rates of duty or refunds, relevant Australian Customs Notices and relevant legislation can also be found on the Australian Border Force website.

Andrew Hudson will be presenting at the International Forwarders & Customs Brokers Association of Australia (IFCBAA) webinar, unpacking the Australia – UAE CEPA and what it means for Australian businesses on 28 October 2025 at 12 pm. Registrations are available via the IFCBAA website.

The announcement regarding the commencement of the Australia – UAE CEPA was made during an official visit by the Australian Prime Minister to the UAE on 29 September 2025, including meetings with the UAE President.  A ‘Joint declaration of the elevation of ties to a strategic partnership between the UAE and Australia’ refers to the commencement of the Australia – UAE CEPA and also refers to a new ‘Investment Protection Agreement’ and the associated ‘Investment Memorandums of Understanding’.

The further development of Australia’s Free Trade Agreement agenda will be keenly watched. Negotiations on an FTA with the European Union have started again following trade disruption occasioned by the Trump tariffs, and negotiators continue to work on completing the second ‘stage’ of our FTA with India. Further, Australia and the Gulf Cooperation Council (GCC) will watch progress with the Australia – UAE CEPA carefully to determine whether it would support the initiation of further negotiations on an FTA between Australia and the GCC.

Contact us

If you would like to discuss the details and impact of the Australia-UAE Comprehensive Economic Partnership Agreement (CEPA) , please contact a member of our Customs & Trade team.