UAE and Japan to begin talks on trade agreement

The UAE and Japan will start negotiations on a comprehensive economic partnership agreement (Cepa), President Sheikh Mohamed bin Zayed Al Nahyan has said.

“We look to strengthen our bilateral ties and explore new opportunities that support sustainable economic growth for both countries,” he said in a post on social messaging platform X.

Japanese prime minister Fumio Kishida also announced the start of negotiations for a trade agreement.

The conclusion of Cepa with the UAE, coupled with negotiations on another free trade agreement between Japan and the Gulf Cooperation, will strengthen economic relations between the two countries, Reuters reported, citing Kishida’s message on X.

The two nations agreed last year to cooperate on technology and climate change, including energy security and investments in the chip and battery sectors.

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UAE-Japan non-oil trade grew by more than 4 percent year on year in the first six months of 2023. In the same period, the UAE’s non-oil exports to Japan exceeded $718 million, while imports from Japan to the UAE totalled $6.3 billion. Re-exports from the UAE to Japan reached $421 million.

Oil trade continues to play an important role in the bilateral relationship. The UAE supplied more than 44 percent – 32.7 million barrels – of Japan’s crude oil needs in March, according to the Agency for Natural Resources and Energy in Tokyo.