United Arab Emirates (UAE) President Mohammed bin Zayed Al Nahyan signed the Comprehensive Economic Partnership Agreement (CEPA) with his South Korean counterpart Yoon Seok-youl in Seoul on Wednesday, dramatically boosting trade between the two countries.
CEPA is South Korea’s first free trade agreement with a Middle Eastern country, South Korea’s Yonhap News Agency reported. ObservedThe two countries finalized much of the agreement in October but finalized and signed it on Wednesday as bin Zayed embarked on an Asian tour that later included a stop in China. He is the first UAE president to visit South Korea.
“Under the agreement, the two countries will eliminate tariffs on more than 90 percent of goods traded over the next 10 years,” Yonhap News reported. “The UAE will specifically remove tariffs on major South Korean exports, including cars, auto parts, defense products, fruit and instant noodles. … The UAE also agreed to open its market to online gaming content and medical services.”
CEPA was part of a long list of agreements the two countries signed on Wednesday, including 19 business deals and memoranda of understanding (MOUs) covering investment, energy, nuclear power, defence, technology, climate change and cultural exchanges, Yonhap News Agency reported. reportThe UAE committed to investing $30 billion in South Korea under the deal.
Most of the agreements were about energy. South Korea signed a key pact with the UAE’s state oil company, Abu Dhabi National Oil Company (ADNOC), to build at least six liquefied natural gas (LNG) carriers to facilitate shipments to South Korea. CEPA itself will also eliminate tariffs on crude oil imports to South Korea over the next decade, increasing the UAE’s chances of profiting from selling oil to Seoul. South Korea is not an oil or gas powerhouse, and has met its growing demand through similar agreements with other Middle Eastern countries.
Bin Zayed’s visit also led to another unique energy deal: a pact between the South Korean government’s Korea Electric Power Corporation and the Emirates Nuclear Energy Corporation to jointly build a nuclear reactor in a third country. Nationwide I got it. South Korea is supporting the construction of the UAE’s Barakah Nuclear Power Plant and playing a vital role in the development of the country’s nuclear industry.
Yoon held a summit with visiting President bin Zayed on Wednesday after Seoul welcomed him with high honours, including a lavish military parade.
“An official reception was held for Sheikh Mohammed at the Presidential Palace in Seoul on Wednesday, the second day of the two-day visit,” it said. Nationwide detail“An honor guard formation was formed amid several displays by South Korean aircraft, a 21-gun salute and the playing of the national anthems of both countries.”
“Groups of children performed Emirati songs while other groups waved the flags of both countries. Seoul’s streets were decorated with UAE flags and the city’s landmarks were lit up in Emirati colours,” the paper said. The UAE president also “enjoyed a traditional Korean tea ceremony” with his hosts.
In a social media post, Bin Zayed thanked Yoon for “constructive discussions” and hailed the “promising progress” in relations between the two countries following the signing of CEPA.
“Today’s signing marks a positive step that demonstrates our determination to build on the strong economic cooperation that binds our two countries and deliver tangible growth for our people,” bin Zayed wrote.
It was a pleasure meeting you. President of South Korea I met with President Yoon Seok-youl in Seoul and had constructive discussions on strengthening bilateral relations. We witnessed the signing of a number of memorandums of understanding and comprehensive economic partnership agreements between the UAE and the Republic of Korea. … pic.twitter.com/LY1j1dKryZ
— Mohamed Bin Zayed (@MohamedBinZayed) May 29, 2024
The free trade agreement marks a major step forward for the Yoon administration, which has prioritized expanding trade ties with Gulf states. In addition to the UAE, Yoon has also led efforts to strengthen defense, energy and trade cooperation with neighboring Saudi Arabia. visited It was the first visit by a South Korean president in October.
“Korea is the best partner for Saudi Arabia in the post-oil era,” Yoon said. Said Speaking at the time with Saudi Arabia’s Crown Prince Mohammed bin Salman, he said: “It is heartening to see bilateral relations evolving from the traditional areas of energy and construction to cutting-edge industrial partnerships in joint production of cars and ships, as well as cooperation in tourism and cultural exchanges.”
Korean companies have since played a leading role in signing contracts to help King bin Salman build “Neom,” a proposed futuristic city in northwest Saudi Arabia that is expected to boast cutting-edge event and festival venues, a high-tech hub, and most strikingly, “The Line,” a 106-mile-long desert skyscraper that the Saudi government claims can accommodate 1.5 million people. Neom played a key role in the $75 billion worth of contracts with Korean companies that King bin Salman signed during his visit to Seoul in 2022.
During his visit to the Middle East in October, Yoon also stopped off in Doha, Qatar, and told local media, “We aim to expand cooperation in various fields, including energy, infrastructure, trade and investment.” [and] “Defense Industry”
