Minister for Trade Ahn Dukgeun (right) and United Arab Emirates' Minister of Foreign Trade Thani Al Zeyoudi on Oct. 14 hold each side's copy of a bilateral strategic economic cooperation agreement at the signing ceremony held at the Korea Chamber of Commerce and Industry in Seoul. (Ministry of Trade, Industry and Energy)

By Margareth Theresia

Korea has struck a comprehensive economic partnership agreement (CEPA) with the United Arab Emirates (UAE).

The Ministry of Trade, Industry and Energy in Seoul on Oct. 16 said Minister for Trade Ahn Dukgeun and UAE Minister of Foreign Trade Thani bin Ahmed Al Zeyoudi on the afternoon of Oct. 14 signed a joint declaration confirming conclusion of the CEPA at the Korea Chamber of Commerce and Industry.

Once the agreement takes effect, Korea will gradually lift tariffs on 92.8 percent of all traded items and the UAE 91.2 percent over a 10-year period.

Under this accord, the UAE will eliminate tariffs on major Korean exports including cars, auto parts, and electrical and electronic products, promising items such as medical devices and cosmetics, and agricultural, livestock, and fisheries products. Key UAE exports like crude oil, petrochemicals and dates will also have their tariffs phased out in Korea.

On the service market, the UAE will open its online gaming, health care, and video and music content markets to Korea to the maximum extent. 

This CEPA is also the first of its kind for the UAE in which it allows bilateral cross-border transfer of data, enabling Korean companies active there to transfer important information that they collect back home.

In addition, the opening of each country's health care service market will allow the opening of clinic- and hospital-level medical institutions and provision of telemedicine.

"The signing of our first free trade agreement with an Arab country will be an opportunity to expand trade and investment with the UAE and spread a new boom in the Middle East by fostering a stable basis for entering the region," the ministry said in a news release. "We expect the CEPA to contribute to enhancing the stability of our companies' entry into the UAE and support their activities in the Middle East and North Africa."

margareth@korea.kr