UAE and Ecuador Sign Joint Statement to Begin Negotiations on Comprehensive Economic Partnership Agreement

The United Arab Emirates (UAE) and Ecuador have signed a joint statement of intent to begin negotiations on a comprehensive economic partnership agreement (CEPA). The joint declaration was signed by Dr. Thani bin Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade, and Sonsoles Garcia, Minister of Production, Foreign Trade, Investment, and Fisheries of Ecuador.

This initiative follows the UAE's recent signing of similar agreements with Costa Rica and Colombia, reflecting the UAE's efforts to expand its economic partnerships in Latin American markets. The comprehensive economic partnership agreement between the UAE and Ecuador is anticipated to enhance bilateral trade beyond oil, focusing on increasing investment flows and trade volumes to raise the level of economic engagement between the two countries.

The proposed CEPA aims to boost non-oil bilateral trade and encourage increased investment flows between the two countries by removing trade barriers and facilitating a diverse exchange of goods and services. This partnership is projected to unlock new economic prospects for both nations, allowing Ecuadorian companies to benefit from the UAE's economic strength and strategic location, while offering Emirati businesses a valuable gateway into the Latin American market.

Why this matters: The UAE-Ecuador CEPA represents a significant step in strengthening economic ties between the Middle East and Latin America. This agreement has the potential to open up new markets, boost trade, and create opportunities for businesses in both regions.

The burgeoning economic relationship between the UAE and Ecuador is evidenced by a significant increase in non-oil bilateral trade, which reached $675 million in 2023, representing a 76% rise from 2022. Additionally, Dubai Ports World's $1.2 billion investment in Ecuador's Port of Posorja underscores the growing economic connections between the two countries.

"The UAE is committed to strengthening its economic partnerships with countries in Latin America, and this joint statement of intent with Ecuador is a testament to that commitment," said Dr. Thani bin Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade. "We look forward to working closely with our Ecuadorian counterparts to negotiate a comprehensive agreement that will bring significant benefits to both our nations."

Key Takeaways

• UAE and Ecuador signed intent to negotiate comprehensive economic partnership
• Agreement aims to boost non-oil trade, investment flows between countries
• UAE expanding economic partnerships in Latin America, including with Costa Rica, Colombia
• UAE-Ecuador trade reached $675M in 2023, up 76% from 2022
• Dubai Ports World invested $1.2B in Ecuador's Port of Posorja