Minister Farrell anticipates the completion of the Australia-UAE Free Trade Agreement in 2024.
Australia and the United Arab Emirates are poised to finalize a free-trade agreement by the end of this year, according to Trade Minister Don Farrell. He mentioned that discussions with the European Union and India would be postponed until after the elections. Farrell is scheduled to visit the UAE this weekend for negotiations on the agreement, coinciding with the annual World Trade Organization Ministerial Conference. He expressed confidence that the UAE negotiations would be less complicated compared to those with the EU, particularly regarding agricultural sectors. Farrell emphasized mutual optimism between the two sides.
The UAE is Australia’s largest trading partner in the Middle East, with bilateral goods and services valued at A$9.3 billion ($6.1 billion) in 2022. Australia also aims to facilitate investment from the UAE’s sovereign wealth fund, particularly in its renewable energy industry.
Farrell hoped that a free-trade deal with the UAE would enhance Australia’s access to markets across the Middle East. Meanwhile, negotiations with the EU and India are on hold due to agricultural import issues until after the elections.
During his UAE visit, Farrell plans to collaborate with international counterparts to reform the WTO, including its dispute settlement mechanism, which has been inactive due to past U.S. actions. He highlighted Australia’s support for WTO reforms, emphasizing its importance for national interests.
Australia previously brought a case against China to the WTO over tariffs imposed on wine and barley amid diplomatic tensions in 2020. However, with improved relations since the election of the Labor government, barley tariffs have been lifted, and Australia awaits the outcome of a Chinese review regarding wine sales barriers.
Farrell expressed optimism about resolving the wine tariffs in the coming weeks, despite recent tensions with China. He anticipates a positive outcome from the review, expected to conclude by the end of March. Farrell also plans to meet with his Chinese counterpart, Wang Wentao, during his UAE visit.
