President Lee Jae Myung (left), during his state visit to the United Arab Emirates (UAE), on Nov. 18, 2025, attends a summit with UAE President Mohamed bin Zayed Al Nahyan at the presidential palace Qasr Al Watan in Abu Dhabi. (Cheong Wa Dae)

By Yoo Yeon Gyeong

The bilateral Comprehensive Economic Partnership Agreement (CEPA) with the United Arab Emirates (UAE) will take effect ahead of schedule on May 1.

The Ministry of Trade, Industry and Resources in Seoul on April 3 said Minister for Trade Yeo Han-koo and UAE Minister of State for Foreign Trade Thani Ahmed Al Zeyoudi reached this agreement in a videoconference.

Once the accord takes effect, tariffs on 91.2% of all items will be scrapped over the next 10 years. This is expected to expand exports in the Middle Eastern market of not only cars, the leading export item, but also those in food, cosmetics and beauty, and the defense industry, three sectors for which demand has been rising.

Major import benefits are also expected. The UAE, Korea's third-largest supplier of crude oil, will phase out tariffs on such fuel, Korea's largest single import, over the next 10 years.

"The CEPA with the UAE is Korea's first free trade agreement with an oil-producing country in the Middle East, and offers an important opportunity to systematically raise economic cooperation with the UAE to the next level," Minister Yeo said. "Through the prompt effectuation of this CEPA, we seek tangible results in cooperation early on for companies in both countries and continuous expansion of strategic collaboration in energy and resources."

dusrud21@korea.kr