(Bloomberg) — Australia has signed a trade deal with the United Arab Emirates that is expected to boost exports of agricultural products and commodities and give Abu Dhabi greater access to investment in green energy and key minerals.
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Trade Minister Don Farrell announced the agreement at a press conference in Canberra on Tuesday. It is the first trade deal by the centre-left Labor government since taking office in May 2022. Farrell said the deal is expected to boost Australian exports by A$678 million ($458 million) a year.
In addition to the trade benefits, the deal could also help unlock investment from the UAE in key policy areas such as Australia’s transition to renewable energy and building supply chains for critical minerals, Farrell said.
“Where there was a free trade agreement with the UAE, the sovereign wealth fund has followed,” Farrell told reporters. “I am absolutely certain that because of the interest in the critical minerals space from so many countries, including the UAE, we will get a lot of additional 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 agreement. Talks eventually broke down in October 2023 over disagreements over access to EU markets for Australian agricultural products.
Both sides blamed each other for the collapse of the talks, which are unlikely to reach a conclusion before the Australian election in May 2025. Farrell has also been working to secure a full free trade deal with India.
“What this agreement shows is that Australia is not the problem in terms of free trade agreements,” Farrell said. “We can do free trade agreements if the deal is the right one for Australia.”
–With assistance from Zoe Ma.
(Updates with comments from the Minister’s press conference)
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