UAE–New Zealand CEPA: A Game-Changer for Trade, Investment, and Business Setup

The Comprehensive Economic Partnership Agreement (CEPA) between the UAE and New Zealand, which came into force on August 28, 2025, marks a historic milestone. It is New Zealand’s first-ever free trade agreement (FTA) with a Gulf Cooperation Council (GCC) member, and it delivers sweeping benefits for both economies.

By eliminating almost all tariffs, creating investment protections, and enabling smoother trade flows, this agreement opens vast opportunities for businesses on both sides. 

For global investors considering business setup in the UAE, this agreement strengthens the country’s position as a hub for trade and investment while providing New Zealand exporters with unprecedented access to the Middle East.

- Removing 99% of Tariffs: A Win for Goods Trade 

One of the most striking outcomes of the CEPA is the removal of 99 percent of tariffs on goods traded between the two countries. For New Zealand exporters, this means duty-free access for dairy, red meat, horticultural products, and industrial goods. Even wine tariffs, previously set at 10 percent, have been scrapped, while poultry will become fully duty-free by 2027. 

On the other side, UAE exporters gain 100 percent tariff elimination from the start. Sectors such as plastics, carpets, jewelry, and glass are set to benefit, boosting non-oil trade flows. For companies pursuing UAE company formation, this agreement makes the country an even more attractive platform for export-led business models. 

- Beyond Goods: Services, Investment, and Digital Trade 

The CEPA extends far beyond traditional goods trade. It incorporates services, investment protections, and digital trade provisions that support modern commerce. 

• Investment Protections: A Bilateral Investment Treaty (BIT) complements the CEPA, ensuring non-discriminatory treatment for investors while safeguarding each country’s right to regulate sensitive areas like labor, environment, and public policy. 

• Services Access: Education, engineering, audiovisual, and environmental services now enjoy equal treatment across markets, giving UAE-based companies and professionals access to New Zealand’s service economy and vice versa. 

• Digital Economy: With digital trade provisions aligned to the Digital Economy Partnership Agreement (DEPA), businesses can move data and digital products across borders with minimal restrictions. 

 This creates new opportunities for startups, consultants, and tech-driven enterprises considering UAE company formation with a global digital trade focus.

- Faster Customs, Smoother Trade 

Customs and logistics can often pose challenges for global trade, but the CEPA introduces streamlined, transparent systems. Goods are expected to be cleared within 48 hours, while perishables must clear customs in six hours. Electronic submissions, certifications, and predictable rules of origin reduce delays, making supply chains more efficient. 

For companies engaged in business setup in the UAE, these systems lower operational risks and enhance the appeal of using the Emirates as a re-export hub for the wider Middle East.

- Sustainability, Labor Rights, and Inclusivity 

The agreement also addresses sustainability and inclusivity, areas becoming increasingly important in global trade. Both countries commit not to lower labor or environmental standards for commercial gain. Instead, they pledge cooperation on sustainable agriculture, forestry, and fisheries, alongside promoting women’s participation in trade.
 

Interestingly, the CEPA also recognizes indigenous economic participation, particularly protecting New Zealand’s Treaty of Waitangi obligations and Māori trade interests. This emphasis on inclusive growth shows how modern FTAs are balancing economic expansion with social responsibility.

- Why This Matters for UAE Business Setup? 

The UAE has positioned itself as a gateway for companies seeking to access global markets. With non-oil trade already hitting AED 3 trillion (US$816.8 billion) in FY 2024–25, and CEPA agreements adding billions more, the country is rapidly evolving into a global hub for trade and investment. For entrepreneurs, investors, and SMEs, this means:
 

• Lower entry barriers for imports and exports. 

• Greater certainty in investment protections. 

• Access to global procurement opportunities. 

• Opportunities in sectors like digital trade, professional services, and sustainable industries.
  
  The UAE–New Zealand CEPA is more than a trade pact; it’s a signal of how forward-looking economies are creating frameworks for long-term growth. By removing tariffs, simplifying trade procedures, expanding investment protections, and emphasizing sustainability, it creates fertile ground for businesses in both countries. 

For investors exploring UAE company formation, this CEPA demonstrates once again why the Emirates is not just a regional hub but a global launchpad for business.

With faster customs clearance and a clear commitment to inclusive growth, the UAE is paving the way for businesses that want to thrive in an interconnected and sustainable world.