(Bloomberg) — Australia has reached a trade agreement with the United Arab Emirates that is expected to boost shipments of agricultural products and resources, as well as provide Abu Dhabi with greater access to investment in green energy and critical minerals.
Most Read from Bloomberg
Trade Minister Don Farrell announced the accord at a press conference in Canberra on Tuesday, marking the center-left Labor government’s first trade pact since coming to office in May 2022. The deal is expected to boost Australian exports by A$678 million ($458 million) annually, Farrell said.
In addition to the trade benefits, the deal may help unlock UAE investment in important policy areas such as Australia’s shift to renewable energy and building supply chains of critical minerals, Farrell said.
“Where there’s been a free trade agreement with the UAE, the sovereign wealth fund has followed,” Farrell told reporters. “I’m absolutely certain because of the interest in the critical minerals space by so many countries, including the UAE, that we’ll get lots and lots of extra investment.”
The trade deal comes after two years of difficult negotiations between Australia and the European Union in an attempt to strike a free trade accord. The talks eventually fell apart in October 2023 over differences around access to EU markets for Australia’s agricultural produce.
Both sides blamed each other for the breakdown in talks, which are unlikely to come to any conclusion before Australia’s election due by May 2025. Farrell has also been working to strike a full free trade agreement with India.
“What this agreement shows is that Australia is not the problem in terms of free trade agreements,” Farrell said. “We can enter free trade agreements where the deal is the right one for Australia.”
–With assistance from Zoe Ma.
(Updates with comments from minister’s press conference)
Most Read from Bloomberg Businessweek
©2024 Bloomberg L.P.
