UAE-Ukraine Trade Deal: A Boost for Post-War Recovery and Beyond

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The United Arab Emirates and Ukraine signed a landmark bilateral trade agreement last week that has the potential to significantly bolster economic ties between the two countries both during and after Ukraine's recovery from the war with Russia. 

Dubbed the Comprehensive Economic Partnership Agreement (CEPA), the deal aims to liberalize trade in goods, services, investment and facilitate cooperation across multiple areas between the UAE and Ukraine. Some key aspects of the CEPA include:

- Tariff Elimination: The agreement will eliminate or reduce tariffs on over 80% of traded goods between the countries within 5 years of implementation. This will boost two-way merchandise trade which reached $385 million in 2021.

- Agriculture Market Access: Major Ukrainian exports like grains, poultry and dairy will gain vastly improved access to lucrative Middle Eastern and North African consumer markets via the UAE. 

- Industrial Goods Boost: Engineering products, machinery, metals and chemicals from Ukraine also stand to benefit from new tariff concessions granted by the CEPA. 

- Investor Protections: Comprehensive investment protection standards, dispute resolution mechanisms and easing of ownership barriers are aimed at attracting more Emirati capital into Ukraine's rebuilding and future growth sectors.

- Services Opportunities: The deal covers expanded cooperation in strategic future-focused areas like fintech, renewable energy, logistics and tourism where both countries hold competitive advantages.

- E-Commerce Agreements: Digital trade clauses will help leverage the booming e-commerce sector in the UAE for Ukrainian SMB exports and innovations to have wider regional outreach.

Besides immediate commercial gains, the CEPA provides a fillip to Ukraine's post-war recovery and long-term resurgence. It assists the government's efforts to diversify export markets, attract investment for reconstruction and develop new industries. For the UAE, it strengthens ties with an emergent European economic and geopolitical player.

The trade deal also highlights the UAE's carefully calibrated neutral stance on the Russia-Ukraine conflict. While most allies sanctioned Moscow, Abu Dhabi took a balanced approach to preserve cooperation with both sides and mitigate conflicts' economic fallout. The CEPA exemplifies these pragmatic efforts through building new avenues of non-energy commerce and cooperation with Kyiv. 

Overall, the far-reaching UAE-Ukraine agreement will pay trade and investment dividends to businesses on both sides for years to come and further deepen the comprehensive partnership between the two nations. It provides a timely boost for Ukrainian industries as they recover and establishes a platform for thriving ties well beyond the current crisis.

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