On Wednesday, the president of the United Arab Emirates ( UAE), Mohamed bin Zayed Al Nahyan, and his counterpart Yoon Suk-yeol, a counterpart of South Korea, signed a” Comprehensive Economic Partnership Agreement ( CEPA ), which dramatically increased trade between the two nations.
The CEPA is South Korea’s primary free trade agreement with a nation in the Middle East, according to the North Korean media support Yonhap. The two nations approved and signed the deal on Wednesday as Bin Zayed began a journey of Asia that will also include a stop in China. The two nations hadhed out the majority of the details of the contract in October. Bin Zayed’s attend to South Korea is the first time a chairman of the UAE has been there.
” Under the deal, the two nations will raise taxes on more than 90 percent of commodities traded over the next 10 times”, Yonhap reported. ” The UAE does especially raise tariffs on South Korea’s major import goods, including cars, car parts, protection items, fruits and quick noodles. The UAE even agreed to “open its business to health services and online gaming information”
The CEPA is part of a longer list of agreements the two countries signed on Wednesday that included, among other measures, “19 business deals and memorandums of understanding ( MOUs ) encompassing investment, energy, nuclear power, defense, technology, climate change and cultural exchanges”, Yonhap reported. The UAE committed in the package to invest ,$ 30 billion in South Korea.
A large portion of the deal was focused on electricity. A major agreement was signed between South Korea and the UAE’s Abu Dhabi National Oil Company ( ADNOC), which would enable shipping to South Korea. In the coming decade, the CEPA itself may impose a tariff on imports of crude oil to South Korea, increasing the likelihood that the UAE will profit from selling fuel to Seoul. South Korea has met its growing desire through similar contracts with other East states despite not being an oil or gas power.
Bin Zayed’s visit even resulted in another unique strength deal: a deal between the Korean government ‘s , Korea Electric Power Corp. and the Emirates Nuclear Energy Corporation to develop nuclear reactor in an unknown third country together. South Korea was crucial to the UAE developing a nuclear power industry, according to the Emirati paper the , National, as it helped with the development of the UAE’s Barakah Nuclear Power Plant.
Following Seoul’s welcoming of bin Zayed with great honors, including an intricate military show, President Yoon held a conference with the visiting al Zayed on Wednesday.
” On Wednesday, the next day of his two- evening visit, an established greeting was held for Sheikh Mohamed at the Office of the President in Seoul”, the , National extensive. The national anthems of both countries were played while a 21-gun salute, an honor guard formation, and several displays by Korean aircraft.
]embedded content ]]embedded content ]
Seoul’s streets were adorned with UAE flags as the city’s landmarks were illuminated in its colors, according to the report, which included groups of children singing an Emirati song while others waved the flags of both countries. The UAE president also “enjoyed a traditional Korean tea ceremony” with their hosts.
Posting on social media, bin Zayed thanked Yoon for the” constructive discussions” held and applauded the “promising step forward” in their relationship after signing the CEPA.
Bin Zayed wrote that” we commit to building on the robust economic cooperation that links our nations and delivers tangible growth to our peoples” and that” the signing of today represents a promising step forward.”
I had a great time meeting @President_KR Yoon Suk Yeol in Seoul and having constructive discussions about boosting bilateral ties. We were also a part of the signing of numerous MoUs and the Comprehensive Economic Partnership Agreement between the UAE and Republic of Korea. … pic. twitter.com/LY1j1dKry Z
— Ù…Øمد بن زايد ( @MohamedBinZayed ) May 29, 2024
The Yoon administration, which has given greater importance to expanding trade ties with the Gulf states, takes a significant step forward with the free trade agreement. In addition to the UAE, Yoon has spearheaded efforts to increase defense, energy, and trade cooperation with neighboring Saudi Arabia, which he visited in October, the first- ever such visit by a South Korean president.
” Korea is Saudi Arabia’s optimal partner in the post- oil era”, Yoon , said , during a meeting with Saudi Crown Prince Mohammed bin Salman at the time. It is encouraging to see the bilateral relationship shift from the traditional fields of energy and construction to a cutting-edge industrial partnership that produces both cars and ships, as well as cooperation in the fields of tourism and cultural exchanges.
Since then, South Korean businesses have taken a leading role in signing agreements to support bin Salman’s construction of” Neom,” a proposed future city in northwest Saudi Arabia with state-of-the-art event and festival venues, tech hubs, and, most alarmingly, a 106-mile desert skyscraper known as” The Line,” which the Saudi government claims will house 1.5 million people. Neom was significant in the$ 75 billion deal with Korean companies that bin Salman signed during a 2022 visit to Seoul.
During his Middle East tour in October, Yoon also made a stop in Doha, Qatar, during that tour, where he , told local media he was seeking expansion in” cooperation in various areas including energy, infrastructure, trade, investment, ]and ] the defense industry”.
