UAE-Turkiye Comprehensive Economic Partnership Agreement

In March, 2023, Turkiye and the United Arab Emirates signed a Comprehensive Economic Partnership Agreement (CEPA) to enhance trade and investments between the two countries. The Agreement came into force in September 2023. 

The Agreement notably provides preferential tariff treatment to the following products:

•  Semi-finished products of iron or non-alloy steel.
•  Articles of iron or steel.
•  Aluminium and articles thereof.
•  Nickel and articles thereof.
•  Electric motors and generators (excluding generating sets).
•  Heat pumps.
•  Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof.
•  Battery cells, battery modules and parts thereof, intended to be incorporated into an electric accumulator of a kind used as the primary source of electrical power for propulsion of vehicles of headings 87.02, 87.03 and 87.04. 
•  Carbon electrodes, carbon brushes, lamp carbons, battery carbons and other articles of graphite or other carbon, with or without metal, of a kind used for electrical purposes.  

Rules or origin dictate the following requirements for goods to benefit from preferential tariff treatment:

• For ores, slags, mineral fuels and mineral oils as well as selected iron and steel - local manufacturing using materials of any heading, except that of the product, is required. 
• For most other products, the value of all non-originating materials used should not exceed 50 % of the exworks price of the product.

The agreement also provides for preferential treatment for foreign direct investment originating from one of the signatory countries, notably allowing full foreign ownership of a company.

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