President Sheikh Mohamed discusses new trade deal with Australian Prime Minister Albanese

President Sheikh Mohamed met Australian Prime Minister Anthony Albanese during his visit to Abu Dhabi on Monday.

The two men met at Qasr Al Shati, where Sheikh Mohamed emphasised the strength and steady growth of UAE-Australia relations over recent decades, state news agency Wam reported.

Sheikh Mohamed noted that ties between the UAE and Australia go beyond the political and economic spheres, encompassing cultural and educational dimensions. He also thanked Mr Albanese for Australia's recognition of Palestinian statehood, adding that the move reflects a deep understanding of the foundations necessary for lasting peace in the region.

As part of his trip, which coincides with the free trade agreement between the two countries coming into effect on Wednesday, Mr Albanese earlier met Reem Al Hashimy, Minister of State for International Co-operation, in the capital.

Joined by his partner Jodie Haydon, Mr Albanese also visited Sheikh Zayed Grand Mosque, which he described as “a place of peace and reflection”.

On the free trade agreement, Mr Albanese wrote on X: “Australian produce is the best there is, I want to see it shared with the world. We’ve been working hard to diversify our trading relationships – on October 1 our free trade agreement with the UAE kicks in. It’s fantastic news for Australian producers, workers and for our economy.”

What is the agreement?

The UAE signed a comprehensive economic partnership agreement with Australia last November.

The deal will “create a range of opportunities for our respective businesses, investors and entrepreneurs”, Dr Thani Al Zeyoudi, Minister of Foreign Trade, wrote in a post on X.

“By removing or reducing tariffs, lifting barriers to trade and enhancing market access, we now have the potential to boost our trade threefold – from $4.23 billion in 2023 to $15 billion by 2032."

The deal was signed by Dr Al Zeyoudi and Don Farrell, Australian Minister of Trade and Tourism, in Canberra. It was witnessed by Sheikh Abdullah bin Zayed, Deputy Prime Minister and Minister of Foreign Affairs, and Penny Wong, Australia's Foreign Minister.

Australia will export more than 99 per cent of its products to the UAE without tariffs under the deal. This will result in estimated savings of $135 million in the first year and $160 million annually thereafter, Mr Farrell said last year when the Cepa talks concluded.