UAE–South Korea CEPA: What It Means for Trade

UAE and South Korea Sign a CEPA to Boost Trade and Investment

The UAE and South Korea signed a Comprehensive Economic Partnership Agreement (CEPA) in Seoul in May 2024. It will remove tariffs on most goods traded between the two countries over the next decade.

JW Marine & Freight teamPublished 31 May 20242 min read

KEY TAKEAWAYS

The UAE and South Korea signed a CEPA in Seoul during the UAE President's state visit.
Tariffs on more than 90% of goods will be removed over ten years.
The UAE will phase out duties on cars; South Korea will remove tariffs on crude oil.
It is the first free trade agreement between South Korea and an Arab country.

What was signed

Dr Thani bin Ahmed Al Zeyoudi, the UAE's Minister of State for Foreign Trade, and Ahn Duk-geun, South Korea's Minister of Trade, Industry and Energy, signed the agreement in Seoul. It concluded talks agreed in October 2023, and was signed during the state visit of His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the UAE, when 19 business deals and agreements were also concluded.

What the CEPA covers

Tariffs. Duties on more than 90% of goods traded between the two countries will be removed over ten years.
Key sectors. The UAE will phase out import duties on cars, and South Korea will remove tariffs on crude oil imports.
Services. The agreement opens markets in areas including cultural services and online gaming.
Wider cooperation. Agreements covered energy, healthcare, advanced industries, smart farming and the bio-economy, plus a climate framework and a memorandum on South Korea building ten LNG carriers worth over USD 1.5 billion.

The CEPA is part of the UAE's programme to raise non-oil foreign trade above AED 4 trillion by 2031. It is South Korea's first free trade agreement with an Arab country, and the UAE is pursuing similar agreements with Malaysia, Vietnam and the Philippines.

What it means for shippers

Lower tariffs make it cheaper to move goods between the UAE and South Korea, but importers must prove origin to claim the reduced rates. A correct certificate of origin and accurate HS codes are essential. Our customs clearance and ocean freight teams can help you plan shipments under the new terms, including sailings to and from Busan and the new direct services covered in our update on Emirates Shipping Line's China route. For a similar development, see the UAE–China agreements.

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