The United Arab Emirates and the Kingdom of Morocco have finalized the terms of a Comprehensive Economic Partnership Agreement (CEPA), marking a new chapter of mutually beneficial trade and investment ties between the two nations.
The conclusion of negotiations was confirmed with the signing of a joint statement by Dr. Thani bin Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade, and Ryad Mezzour, Moroccan Minister of Industry and Trade.
Upon implementation, the UAE-Morocco CEPA will facilitate the free flow of goods and services by reducing or removing tariffs, eliminating unnecessary barriers to trade, improving market access for services, enhancing customs harmonization, and establishing flexible rules of origin for goods.
The agreement will also create platforms for investment and private-sector collaboration in priority sectors such as renewable energy, tourism, infrastructure, mining, food security, transport, logistics, and ICT.
In 2023, the two nations shared US$1.3 billion in non-oil trade, a 30 percent increase from 2022 and 83 percent more than in 2019. The UAE is the largest Arab investor in Morocco, with more than US$15 billion invested in various strategic projects.
Dr. Thani bin Ahmed Al Zeyoudi expressed his enthusiasm for the agreement, saying,
The UAE-Morocco Comprehensive Economic Partnership Agreement is a valuable addition to our CEPA program. Our two brotherly nations already enjoy strong bilateral economic relations, and this agreement will enable us to further develop areas of mutual benefit, particularly in sectors such as tourism, energy, manufacturing, and agriculture, and generate long-term prosperity for both peoples. Morocco is one of the largest and most competitive economies in Africa, and we look forward to working in unison to create new opportunities for our private sectors.
Ryad Mezzour echoed this sentiment, stating,
I signed today with my brother, Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, a joint declaration announcing the conclusion of negotiations between our two countries on a Comprehensive Economic Partnership Agreement. This Agreement is part of the implementation of the Declaration signed by His Majesty King Mohammed VI and President His Highness Sheikh Mohamed bin Zayed Al Nahyan on 4th December 2023 in Abu Dhabi, which aims to establish an innovative, renewed, and solid partnership between the two brotherly countries.
The agreement, which strengthens the legal arsenal between the two countries, aims to support the development of trade and investment, by opening new opportunities to upgrade the level of joint cooperation in economic and commercial fields,
he added.
Morocco is the sixth-largest economy on the African continent. In 2023, its GDP was US$152.4 billion, expected to grow by 3.5 percent in 2024. The services sector is the largest contributor to GDP, accounting for 54 percent, while agriculture remains the largest employer, and the industrial sector contributes 23 percent.
The UAE’s CEPA program aims to increase the country’s non-oil foreign trade to AED4 trillion by expanding relations with strategically important markets worldwide. In 2023, the UAE’s non-oil trade in goods reached an all-time high of US$710 billion, a 12.6 percent increase from 2022 and 34.7 percent more than 2021. Morocco is the latest African nation to conclude CEPA terms with the UAE, following Mauritius, Kenya, and Congo-Brazzaville.
News Source: Emirates News Agency
