Customs Amendment (Australia-United Arab Emirates Comprehensive Economic Partnership Agreement Implementation) Bill 2025, Customs Tariff Amendment (Australia-United Arab Emirates Comprehensive Economic Partnership Agreement Implementation) Bill 2025
Ms LAWRENCE (Hasluck) (17:01): Congratulations on your ascension to the Speaker's panel, Deputy Speaker Boyce. I strongly support these bills that implement the Australia-United Arab Emirates Comprehensive Economic Partnership Agreement, or the UAE CEPA. This moment marks a significant milestone in Australia's trade history—our first free trade agreement with a nation in the Middle East.
The agreement is the result of dedicated negotiation, reflecting the Albanese Labor government's commitment to expanding Australia's international trade relationships, diversifying our export markets and creating opportunities for Australian workers, farmers, producers and service providers. In March 2023 I had the distinct privilege of meeting a high-level delegation from the United Arab Emirates, including His Excellency Abdulla Al Subousi, the then ambassador; members of the UAE parliament, the Federal National Council; His Excellency Dr Ali Al Nuaimi; Her Excellency Sara Falaknaz; and His Excellency Marwan Al Muhairi.
There were representatives from all seven emirates in the room. During our discussions, the UAE representatives expressed a clear desire to deepen trade ties and collaborate with Australia not only in traditional sectors but also in emerging areas such as the green economy and clean energy technologies. This personal engagement exemplifies the very strong diplomatic and commercial relationships that underpin the UAE CEPA and gives me great confidence that this partnership will continue to grow in both scale and scope.
The agreement is groundbreaking in its breadth and ambition. It eliminates tariffs on over 99 per cent of Australian exports to the UAE, making it the most liberal trade agreement the UAE has ever entered into. Independent economic modelling predicts an increase in Australian goods exports of approximately $678 million per year.
The tariff savings alone will reach an estimated $135 million in the first year, growing to $160 million within five years. These are tangible benefits for Australian farmers, producers and manufacturers, strengthening their competitiveness in a wealthy and dynamic market. Australia's exports to the UAE have increased significantly both in scale and in complexity.
Back in the early 1990s, monthly exports were as low as A$7 million. Fast forward to early 2024: they hit a record of about $680 million, with March 2025 pushing that even higher to A$720 million—a clear indicator of sustained upward momentum. Our trade relationship with the UAE is already robust.
In 2023 two-way trade with the UAE was valued at nearly $10 billion, accompanied by two-way infrastructure investment exceeding $20 billion. The UAE stands as Australia's largest trade and investment partner in the Middle East, and the CEPA further enhances this position by providing that greater certainty and easier access for Australian exporters and investors.
Over the years, Australia's exports to the UAE have steadily grown and evolved, reflecting not just the changing market demands but the strength and the maturity of our bilateral relationship. What began primarily as trade in agricultural goods—high-quality meat, dairy and livestock—has expanded to a much broader economic partnership. In the early days, our exports were focused on feeding a growing population in the gulf.
The UAE was, and still is, a key market for our trusted, clean and halal-certified food products, but, as both countries have developed and diversified, so has the nature of our trade. From the early 2000s onwards we really started to see the momentum building, with Australian businesses exporting a wider range of products, from education and health services to advanced manufacturing and renewable technologies.
The UAE is the global logistics and investment hub and has become a crucial gateway for Australian goods and services into the broader Middle East and the North Africa region. More recently, our economic ties have deepened further, particularly as both nations have looked to diversify. As Australia seeks to reduce its over-reliance on any one trading partner, the UAE has emerged as an important partner in that trade diversification strategy.
At the same time, the UAE's own economic vision, focused on innovation, sustainability and non-oil industries, creates clear alignment with Australia's strengths in clean energy, mining technology, agritech and education. This is about more than just trade; it's about building long-term strategic partnerships that deliver real benefits back home. This agreement supports Australian jobs, particularly in our regions, and creates new opportunities for exporters, whether they're small-scale producers from the Swan Valley in Western Australia or education providers in our cities.
The future of our trade with the UAE is so strong, and it reflects a modern, forward-looking Australia, confident in our values, competitive in global markets and committed to building lasting relationships that benefit us all. One of the key features of this agreement is its comprehensive coverage beyond goods. Australian service providers across more than 120 sectors, including professional services, financial services, education and training, will benefit now from improved regulatory transparency and protections.
This will allow Australian businesses to expand their footprint into the UAE and deliver those services with confidence and reliability in what is a highly competitive international market. The Albanese government is particularly focused on leveraging this agreement to support our transition to net zero emissions under our Future Made in Australia plan. The UAE's sovereign wealth fund, which is valued at $1.5 trillion, represents a significant source of capital, and the agreement is expected to stimulate new investment in Australia's critical minerals and clean energy sectors.
Critical minerals such as alumina—the largest Australian export to the UAE—are essential inputs to clean energy technologies and the broader energy transition. Indeed, Minister Don Farrell has emphasised that, globally, where free trade agreements with the UAE have been established, sovereign wealth fund investment has closely followed. This agreement provides the imprimatur for both governments that investment in Australian industries supporting the energy transition is welcome and encouraged.
Given global demand for critical minerals and clean energy technology, this deal positions Australia to really capitalise on these trends, creating high-value jobs and strengthening our economy's future resilience. Environmental cooperation is another vital pillar of the CEPA. Australia and the UAE have committed to collaboration on shared challenges, including transitioning to net zero, promoting circular-economy principles, reducing pollution, improving air quality and combating illegal wildlife trade.
This agreement goes beyond the traditional trade goals. It's embedding a framework for sustainable development and climate action, which is essential in such an interconnected world. This agreement also includes modern provisions addressing digital trade, anticorruption, intellectual property rights and skilled labour mobility.
It creates a comprehensive, future-facing trade architecture that supports Australian enterprises of all sizes to engage confidently in the UAE market. There is also a historic and important innovation in the agreement for a dedicated chapter on First Nations trade. So, for the first time in Australian trade history, Indigenous businesses seeking to export goods to the UAE will receive preferential market access, opening meaningful commercial opportunities.
This initiative aligns well with our broader commitment to economic empowerment and reconciliation for First Nations peoples. However, it is also important to acknowledge the concerns that have been raised, especially by unions and advocacy groups, regarding human rights and labour protections in the UAE. The UAE's labour laws, including the kafala sponsorship program, have been criticised for enabling exploitation of migrant workers, including the withholding of passports, unpaid wages, and limited rights to unionise and bargain collectively.
These issues are concerning, and they have to be addressed. The Albanese government is committed to upholding Australian values in its trade policies. While this agreement does not include the investor-state dispute settlement mechanism, which protects the government's sovereign right to regulate, it must also serve as a platform for promoting fair labour standards and human rights.
We must remain vigilant and advocate for improvements in labour protections and ethical standards, ensuring that trade does not come at the expense of human dignity. On the economic front, while the UAE sovereign wealth fund presents promising opportunities, experts advise caution in expecting an overwhelming influx of capital. The UAE itself is a competitor in clean energy development, with abundant wind and solar resources and substantial funding for projects.
Australia's biggest commercial prospects in the energy transition will also depend on strong partnerships with other major regional economies, such as China and Japan, which have extensive decarbonisation ambitions. Industry stakeholders have widely welcomed this agreement. The Australian Meat Industry Council has highlighted the enhanced competitiveness of its red meat products in the UAE market.
The Australian Industry Group views the deal as a gateway for Australian companies to explore the Middle East for the first time, opening new pathways for trade investment. The Parliamentary Joint Standing Committee on Treaties conducted its own inquiry into the merits of the agreement. There were so many submissions.
The Australian Industry Group, for example, in their submission, stated it was 'set to bring substantial benefits to both markets' and it 'opens new avenues for economic collaboration and signals optimism in trade relations'. The National Farmers' Federation submitted, 'Beyond the deal-specific tariff reductions, the near complete liberalisation of trade afforded by the CEPA is an important demonstration of the benefits of free and open trade in both the Middle East and more broadly.' As the government moves to implement the agreement, the customs amendment bill will introduce the necessary changes to the Customs Act 1901, and these changes include new rules-of-origin requirements and record-keeping provisions to enable preferential tariff treatment under CEPA.
This will ensure that Australian custom regulators align with the obligations of the agreement and facilitate smooth trade flow. In conclusion, the Australia-United Arab Emirates comprehensive economic partnership agreement represents a forward-looking and comprehensive trade deal. It's diversifying our trading relationships.
It's expending access to a vital and growing market. It supports critical sectors in our economy, particularly for agriculture and clean energy. And it embeds important commitments on sustainability and Indigenous economic participation.
I commend the bills to the House, and I look forward to seeing the tangible benefits that this agreement will deliver for Australian businesses, workers and our communities.