UAE finalises trade deal terms with Congo

Xose Bouzas / Hans Lucas via Reuters Connect

• Cepa ready to be signed
• Removes or reduces tariffs
• Non-oil trade up 134%

The UAE and the Republic of Congo have finalised the terms of a comprehensive economic partnership agreement – and are looking to the Cepa to build on their growing trade relationship.

Bilateral non-oil trade increased 134 percent year on year during the first six months of 2023, to reach $2.1 billion.

The two countries also signed three strategic agreements in 2023: on double taxation avoidance, investment promotion and protection, and air transport.

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The conclusion of Cepa negotiations was confirmed by the signing of a joint statement last week by Dr Thani bin Ahmed Al Zeyoudi, UAE minister of state for foreign trade, and Jean-Baptiste Ondaye, minister of economy and finance for Congo.

Once ratified and implemented, the Cepa between the UAE and Congo will drive trade growth by reducing or removing tariffs, improving market access and enhancing customs procedures. 

The conclusion of talks “marks an important progression in our efforts to strengthen economic ties not only with the African continent but a strategic partner with which we have seen non-oil trade more than double in the first half of 2023”, Al Zeyoudi said.

Congo, in West-Central Africa, was the 12th-largest trading partner of the UAE among non-Arab African countries in 2022.

The UAE is the eighth-largest export market for Congo and 13th largest import market. It accounts for about 72 percent of Congo’s non-oil trade with Arab countries.

“We look forward to ushering in this new era of co-operation and to expanding our presence in Africa as a trusted partner and investor,” said Al Zeyoudi.

In June, Abu Dhabi Ports Group signed a 30-year concession agreement to operate the multipurpose New East Mole Terminal in Pointe-Noire, Congo. It plans to invest more than $500 million.

Over the past decade, the UAE has emerged as the largest investor in Africa among the GCC members, according to figures published last year by law firm White & Case.

The UAE’s Cepa programme is part of its ambitions to increase exports by 33 percent and contribute more than AED153 billion to the national GDP by 2031.

“In the past 12 months, trade has become a record-setting driver of growth, a pillar of economic policy, a linchpin of foreign relations and, at the recently concluded Cop28, a new front in the battle against climate change,” added Al Zeyoudi.