In another historic event for the bilateral relations between Colombia and the United Arab Emirates, both countries have signed the Comprehensive Economic Partnership Agreement (CEPA), the first of its kind that Colombia has signed with an Arab country. The Minister of Commerce, Industry and Tourism of Colombia, Germán Umaña Mendoza, and his Emirati counterpart, Thani bin Ahmed Al Zeyoudi, signed an agreement that promises to diversify and expand economic relations, benefiting multiple sectors of industry, cooperation, and diplomacy.
Strengthening Trade and Investment through the Comprehensive Economic Partnership Agreement
“We celebrate the signing of this Agreement, which is in line with the objectives we are promoting from the Government of Change, and in line with our foreign trade, reindustrialization, and tourism policies. The United Arab Emirates is an important ally, not only for attracting sustainable foreign investment but also in our commitment to diversifying our export offerings, with an emphasis on creating energy sources aligned with the goal of combating climate change,” commented Minister Umaña Mendoza.
For his part, the Minister of State for Foreign Trade of the United Arab Emirates, Thani bin Ahmed Al Zeyoudi, highlighted the strategic importance of the agreement: “Our Comprehensive Economic Partnership Agreement with Colombia, the fourth largest economy in South America, is an exciting step forward in our foreign trade agenda. It opens up opportunities in a vibrant and high-growth nation to our exporters and investors, and provides an important bridge to the heart of South America.”
Minister Al Zeyoudi added: “This Agreement is a reflection of the growing economic links between our countries. It also opens up opportunities to strengthen relationships in priority sectors such as aviation, renewable energy, the environment, hydrogen, travel, and artificial intelligence, and we look forward to developing these areas of mutual benefit in the coming months and years. We are committed to open and rule-based trade and this agreement will create a variety of opportunities for our private sector that will boost our respective growth agendas.”
Economic and Commercial Impact
In 2023, bilateral trade already showed considerable potential, with exchanges reaching US$329 million. Colombia has primarily exported non-mining products to the Emirates, reaching US$34.3 million, highlighting items such as coffee, flowers, and fruits like mangoes and avocados. On the other hand, the United Arab Emirates stands out as a robust market for Colombian agriculture, importing globally around US$19,000 million in agricultural products and food annually.
The CEPA guarantees preferential access for 85% of Colombian products to the Emirati market tariff-free, including coffee, fruits, confectionery, beef, and dairy products, among others, with an additional 13% of products benefiting from a five-year tariff reduction schedule. On the Emirati side, 63% of the products will enter Colombia without tariffs immediately, with the rest following schedules of up to 12 years.
Tecnoglass Expands to Saudi Arabia
According to the news portal Pulzo, Tecnoglass, the renowned Colombian company specializing in the manufacture of glass and aluminum for construction, has opened a new headquarters in Saudi Arabia. This step not only reflects the growing economic cooperation between Colombia and Saudi Arabia but also positions Tecnoglass as a global player in the construction and materials manufacturing industry, thus accessing a prosperous and growing market due to the increase in construction and urban development projects in the region.
Deepening Diplomatic Relations and Cooperation
The strengthening of diplomatic relations between Colombia and Saudi Arabia has also seen significant advancements with the signing of several agreements between the deputy foreign ministers of the two countries. These agreements, which cover education, tourism, and cultural cooperation, seek to promote mutual understanding and shared benefits, focusing on collaboration in various fields to strengthen bilateral ties and expand cooperation opportunities.
These meetings and agreements not only reflect the goodwill and mutual respect between both countries but also underline the commitment to continuous strengthening of their cooperation on the international stage.
Undoubtedly, recent developments in the relations between Colombia and Saudi Arabia through economic agreements, business expansions, and diplomatic strengthening reflect an era of cooperation and mutual understanding that promises to bring significant benefits to both countries and even to their regions. These joint efforts will not only improve the economies of both countries but also strengthen their position on the global stage, marking a promising future for cooperation between Latin America and the Middle East.
