Victorian businesses are set to gain a significant competitive edge in the Middle East from today, with the Australia-United Arab Emirates Comprehensive Economic Partnership Agreement (CEPA) coming into force on 1 October 2025. The landmark agreement is Australia's first free trade deal in the Middle East and opens the door to Victoria's largest trading partner in the region, with the UAE representing the state's most valuable export market in the Middle East.

As well as tariff reduction benefits outlined below, CEPA includes mechanisms to resolve Non-Tariff Barriers (NTBs) which might otherwise impede trade. Modern provisions on Sanitary and Phytosanitary (SPS) measures and Technical Barriers to Trade (TBT) ensure cross-border regulatory environment which facilitates the flow of goods

Victoria's gateway to a growing region

The UAE serves as a destination market and a strategic gateway to the broader Middle East and beyond. As a major global logistics and business hub with business-friendly regulations, no foreign-ownership restrictions, and streamlined processes, the UAE enables Victorian exporters to leverage reduced tariffs and established trade routes to expand throughout the region.

With Victoria’s two-way trade with the UAE valued at $1.86 billion in 2024/25, including $951 million in exports Victorian businesses are well-positioned to benefit under CEPA.

Victorian agriculture and food: meeting regional demand

Gulf countries import up to 90 per cent of their food requirements, creating consistent and growing demand for Victorian agricultural commodities and premium food and beverage products. From 1 October, Victorian producers gain immediate duty-free access across key categories.

Food and agriculture benefits

Victorian farmers and food producers will see all tariffs eliminated on entry into force for:

• Dairy products – full tariff elimination an all dairy products benefitting Victoria's world-class dairy sector
• Red meat – duties removed on frozen red meat, with the UAE already Australia's and Victoria's largest red meat market in the Middle East
• Canola seeds – the 5 per cent tariff eliminated on one of Victoria's major grain exports
• Grains, pulses, honey, and horticultural products – immediate tariff elimination

Victorian agtech companies have emerging opportunities as Gulf nations invest heavily in sovereign food security. Victorian providers can offer innovative solutions to help establish new, efficient farming operations in the region, addressing long-term food security challenges.

Manufacturing benefits

Tariffs on vehicle parts will be eliminated either from 1 October 2025 or over 3 years. This is a major outcome for Australia in its largest vehicle parts export market. The UAE is our 3rd largest market for vehicle parts valued at $60 million in 2024/25, supporting Victoria’s advanced manufacturing sector.

Tariffs on pharmaceutical exports to the UAE are locked at zero, ensuring a competitive edge for Australian firms.

The agreement's provisions on professional services and mutual recognition of qualifications further support Victorian health and medical professionals seeking to operate in the UAE market.

First Nations enterprise opportunities

CEPA marks a historic first as Australia's first free trade agreement to include a dedicated chapter promoting First Nations trade and investment.

This inclusion recognises the unique contribution that First Nations people and businesses make to international trade and encourages cooperation between Australia and the UAE to support First Nations enterprises.

The agreement provides for coordination to prevent exports of counterfeit goods purporting to derive from traditional knowledge or traditional cultural expression. It also provides a basis for future discussions on resale royalty rights of artists, including First Nations artists.

Genetic resources, traditional knowledge and traditional cultural expressions are acknowledged in the agreement. This includes with respect to the names and uses of plants, traditional foods, language, song, stories, songlines, dance and works of art.

A 50-year partnership elevated

The agreement's entry into force coincides with 50 years of diplomatic relations between Australia and the UAE, and the elevation of the relationship to a Strategic Partnership. This provides a strong foundation for deeper economic, trade, and investment linkages.

Independent modelling estimates the agreement could generate an additional $678 million in Australian goods exports annually, with Victorian businesses strategically positioned to capture substantial opportunities given the state's existing strength in the UAE market.

Beyond export opportunities, the agreement creates pathways for increased UAE investment into Victoria. Recent engagement with UAE investors has identified strong interest in Victorian opportunities across agribusiness, infrastructure, data centres and artificial intelligence, renewable energy and waste management, critical minerals, real estate, and hospitality sectors.

Next steps for Victorian exporters

Interested in exploring opportunities under the Australia-UAE CEPA?

For detailed information on the Australia-UAE CEPA and how your business can benefit, visit the Department of Foreign Affairs and Trade website, or contact us at Global Victoria.