The United Arab Emirates (UAE) is planning to sign a Comprehensive Economic Partnership Agreement (CEPA) with the Mercosur bloc, which consists of South American countries. The third round of talks, which began in 2023, was held last month in Uruguay. These negotiations are expected to conclude in the first half of 2025.
Mercosur member Paraguay exported $41.3 million worth of goods to the UAE in 2022, including agricultural products and food items. The UAE, in turn, exported $191 million to Paraguay, with refined petroleum, glass, and steel standing out in the trade.
Brazil remains the UAE's largest trade partner in South America, while the UAE is Brazil's second-largest trade partner in the MENA region. The UAE has investments worth $10 billion in Brazil, some of which are concentrated in the defense industry.
These talks with Mercosur are seen as a significant step in the UAE's CEPA program, which aims to increase its non-oil trade volume to $1 trillion by 2031.
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