The UAE and Morocco have concluded negotiations on the terms of the Comprehensive Economic Partnership Agreement (Cepa) in order to enhance trade and investment relations.
The UAE and Morocco have recently concluded negotiations on a Comprehensive Economic Partnership Agreement, aiming to enhance trade and investment ties between the two countries.
This agreement is expected to facilitate the exchange of
goods and services by reducing or eliminating tariffs, removing trade barriers,
and enhancing market access for services. Additionally, it will create
opportunities for investment and collaboration in key sectors like renewable
energy, tourism, infrastructure, mining, food security, transport, logistics,
and information and communications technology.
Dr. Thani Al Zeyoudi, Minister of State for Foreign Trade,
emphasized the importance of this agreement in further strengthening the
already robust economic relationship between the two nations, particularly in
sectors such as tourism, energy, manufacturing, and agriculture.
The two nations exchanged $1.3 billion in non-oil trade last
year, marking a 30% increase from 2022. The UAE stands as the primary Arab
investor in Morocco, with investments exceeding $15 billion across a wide array
of strategic projects.
Morocco’s Minister of Industry and Trade, Ryad Mezzour,
highlighted that the agreement fortifies the legal framework between the two
countries, aiming to bolster trade and investment development by creating new
opportunities to enhance cooperation in economic and commercial domains.
Morocco, the sixth-largest economy in Africa, is expected to
witness a 3.5% GDP growth this year, following a 3.1% expansion last year, as
per the International Monetary Fund. Despite agriculture being the largest
employer, the services sector contributes the most to GDP at 54%, while the
industrial sector contributes 23%.
In response to a devastating 6.8-magnitude earthquake that
struck Morocco on September 8, the IMF approved a $1.3 billion financing
package last year. This earthquake was the deadliest in over 60 years, claiming
the lives of approximately 3,000 individuals.
The 18-month funding agreement will “assist Morocco in addressing climate vulnerabilities, strengthening its resilience against climate change, and seizing the opportunities from decarbonisation,” the Washington-based lender stated at that time.
Morocco has become the most recent African country to
finalize Cepa terms with the UAE, following in the footsteps of Mauritius,
Kenya, and Congo-Brazzaville.
The Emirates’ Cepa program is projected to increase the
country’s exports by 33 percent and contribute over Dh153 billion to GDP by
2031.
In the previous year, the UAE’s non-oil foreign trade of
goods and services reached a record high of $710 billion, marking a 12.6
percent increase from 2022.
To further expand its trade, the UAE is aiming to establish
26 Cepas. While agreements have been reached with India, Turkey, Israel,
Indonesia, Cambodia, and Georgia, negotiations are ongoing with Serbia,
Vietnam, the philippines, New Zealand, and Ecuador.