Market Update: Parliament ratifies Comprehensive Economic Partnership Agreement with UAE – Full Analysis

A plenary session is underway at the National Assembly in Yeouido, western Seoul, on March 31. [YONHAP]

 

The National Assembly on Tuesday ratified the bilateral Comprehensive Economic Partnership Agreement (CEPA) with the United Arab Emirates (UAE), marking Korea’s first free trade pact with a Middle Eastern country.

 

The ratification came after the two countries reached the agreement in October 2023, following three years of negotiations, with the deal formally signed in May 2024.

 


A CEPA is a type of free trade agreement that encompasses a broader scope of economic cooperation beyond market opening.

 

When implemented, the two countries will lift tariffs on more than 90 percent of goods traded over the next 10 years.

 

Major Korean export goods that will benefit from the deal include foodstuffs, cosmetics and defense products. Tariffs on crude imports from the UAE will also be abolished over the decade.

 

The CEPA is expected to accelerate bilateral economic cooperation in areas including energy, resources and cutting-edge industries, industry watchers said.

 

The government plans to notify the UAE of the completion of the domestic procedures required for implementation and coordinate follow-up measures.

Yonhap