Leveraging Free Trade Agreements: CEPA, GAFTA, and FTA Benefits for UAE Importers

The UAE has emerged as a global leader in trade liberalization, having concluded 27 Comprehensive Economic Partnership Agreements (CEPAs) by 2025. The UAE's non-oil foreign trade hit a record AED 3 trillion ($820 billion) in 2024, with CEPAs contributing AED 135 billion—an increase of 42% compared with 2023.

UAE's Comprehensive Economic Partnership Agreements (CEPAs)

Ten CEPA agreements are now operational: India, Indonesia, Israel, Turkey, Cambodia, Georgia, Costa Rica, Mauritius, Serbia, and Jordan. Additional agreements with Australia and Malaysia took effect in late 2025.

The UAE aims to increase non-oil foreign trade to $1.1 trillion by 2031 through these strategic partnerships.

UAE-India CEPA (Most Significant)

Signed in February 2022 and effective since May 2022, the UAE-India CEPA has been transformative:

Bilateral merchandise trade nearly doubled from USD 43.3 billion in FY 2020-21 to USD 83.7 billion in FY 2023-24.

UAE exports to India jumped by 75% by end of 2024.

Zero duty on 80% of tariff lines covering textiles, jewelry, gems, leather, and metals.

Key benefits include immediate tariff elimination on UAE-origin goods like aluminum, copper, and plastics exported to India, and preferential access for Indian textiles, jewelry, and agricultural products to the UAE market.

UAE-Indonesia CEPA

Effective since September 2023, targeting $10 billion bilateral trade by 2027:

Trade has grown over 15% since implementation.

Covers energy, petrochemicals, ports, logistics, and tourism sectors.

Preferential tariffs on Indonesian palm oil, rubber, coffee, and manufactured goods.

UAE-Turkey CEPA

Targeting $40 billion bilateral trade by 2028:

Trade increased over 11% since implementation.

Benefits Turkish textiles, machinery, automotive parts, and food products.

Reduced or eliminated tariffs on qualifying goods in both directions.

Greater Arab Free Trade Agreement (GAFTA)

GAFTA eliminates customs duties on goods traded between Arab League member states:

Complete duty elimination on qualifying goods of Arab origin.

Member states include Saudi Arabia, Egypt, Jordan, Morocco, Tunisia, and 13 other Arab League countries.

Certificate of Origin required from member state chambers of commerce.

GCC Common Market

Free movement of goods between all six GCC member states:

Saudi Arabia, Kuwait, Bahrain, Qatar, Oman, and UAE.

No customs duties on goods of GCC origin.

Unified external tariff of 5% for non-GCC goods.

How to Claim FTA/CEPA Benefits

To receive preferential tariff treatment:

Obtain Certificate of Origin from the authorized body in the exporting country (Chamber of Commerce or designated ministry).

Declare FTA Treatment when submitting the customs declaration through Dubai Trade portal.

Meet Origin Requirements specific to each agreement (value-added thresholds, substantial transformation rules).

Rules of Origin

Each agreement specifies qualification criteria:

Wholly Obtained: Products entirely produced in the partner country.

Substantial Transformation: Products sufficiently processed to change tariff classification.

Value-Added Test: Typically 35-40% local value addition required.

Cumulation: Some agreements allow combining materials from multiple partner countries.