Colombia and UAE Sign Free Trade Agreement

Colombia and the United Arab Emirates (UAE) signed a free trade agreement after two years of negotiations on Thursday, April 18. This Comprehensive Economic Partnership Agreement will allow a wide range of Colombian products to be exempt from customs duties, including coffee, chocolate, fruits and their derivatives, precious stones, wood and leather manufactures, clothing, fertilizers, and agrochemicals, among others.

Colombia and the UAE are modest trading partners, with trade valued at an estimated $329 million for 2023. Colombia primarily exports gold and coffee to the UAE, while the Gulf country imports products from the oil industry, primarily manufactured plastics.

The agreement was signed virtually by Gustavo Petro and his counterpart, Sheikh Mohamed bin Zayed Al Nahyan, and includes 19 cooperation agreements, notably in health and phytosanitary areas, trade and digital commerce, and responsible tourism.

Colombia – UAE partnership

This Free Trade Agreement marks the culmination of a rapprochement between Colombia and the UAE in recent years. On the sidelines of COP28 held in Dubai in December 2023, the UAE announced an investment of approximately $40 million in the La Guajira department for the construction of a hospital and the promotion of sustainable tourism.

Emirati investors have indeed increased their investments in Colombia in recent years. These investments are manifested through the acquisition or entry into the capital of large companies, such as the food industry giant Grupo Nutresa, or in the mining sector through the mining projects of Soto Norte (copper and gold) and Coscuez (emeralds). Colombia presents enormous potential for investments and economic and industrial development, with capital inflows from the Gulf likely to stimulate this growth.

Colombians in the UAE

During the ceremony, President Gustavo Petro announced the upcoming launch of a direct flight between Colombia and the UAE, operated by Emirates Airline, the airline of the Dubai Emirate. “I hope this represents a greater flow of Colombians who can go there, and many people from there can come here,” stated the Colombian President in this respect.

This decision could indeed boost tourism between the two countries, as citizens of both nations are already visa-free for tourism when visiting the other country. In the UAE, the Dubai Emirate in particular is a popular destination among wealthy Colombians.

Colombians are the largest Latin American community in the UAE. In recent years, Colombians have been attracted by the high salaries offered in the Gulf country, with thousands of Colombians now living there.