The United Arab Emirates is significantly expanding its global trade footprint by strengthening economic ties with Latin America through new Comprehensive Economic Partnership Agreements (CEPAs). Recent agreements with Costa Rica and Chile mark a strategic shift in the UAE’s trade policy, reinforcing its ambition to become a central hub for international commerce, investment, and supply-chain connectivity.
These developments reflect the UAE’s broader strategy to diversify non-oil trade, attract foreign investment, and build resilient global value chains across emerging and established markets.
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UAE–Latin America: A Growing Economic Corridor
Latin America represents a high-potential market for the UAE, offering opportunities across agriculture, food security, renewable energy, logistics, infrastructure, mining, and technology services. By formalising trade relations through CEPAs, the UAE aims to unlock long-term commercial partnerships while reducing dependency on traditional markets.
The newly implemented CEPAs go beyond conventional free trade agreements by addressing not only tariffs but also investment protection, customs cooperation, services trade, and regulatory alignment—creating a predictable and business-friendly environment for cross-border activity.
Key CEPA Developments
UAE–Costa Rica CEPA
The UAE–Costa Rica CEPA, which recently entered into force, focuses on:
- Eliminating or reducing customs duties on a wide range of goods
- Facilitating trade through streamlined customs procedures
- Enhancing cooperation in services, including logistics and professional services
- Encouraging bilateral investment and private-sector collaboration
Costa Rica serves as a strategic gateway to Central America, positioning UAE companies to access broader regional markets.
UAE–Chile CEPA
The UAE–Chile CEPA, signed in 2024 and now operational, builds on Chile’s existing trade openness and economic stability. The agreement is designed to:
- Expand non-oil bilateral trade
- Promote investment in infrastructure, energy, food security, logistics, and technology
- Support small and medium-sized enterprises through improved market access
- Strengthen institutional cooperation through taxation and customs frameworks
Chile’s extensive trade network makes it an attractive partner for UAE businesses seeking entry into South American markets.
Strategic Impact for Businesses
These CEPAs create tangible advantages for companies operating in or through the UAE:
- Lower trade costs through tariff reductions and simplified customs processes
- Improved legal certainty for cross-border investments
- Access to new consumer and industrial markets in Latin America
- Enhanced supply-chain diversification, particularly in food, energy, and industrial inputs
For UAE-based companies, the agreements also reinforce the country’s position as a launchpad for global expansion, enabling businesses to structure international operations more efficiently.
Part of a Broader Trade Vision
The Latin America focus aligns with the UAE’s wider CEPA programme, which targets high-growth economies across Asia, Africa, Europe, and the Americas. By negotiating comprehensive, forward-looking trade agreements, the UAE is positioning itself at the centre of emerging global trade flows while supporting sustainable economic growth.
Ongoing discussions with additional Latin American countries, including Peru, indicate that this regional engagement is set to deepen further in the coming years.
As global trade patterns continue to evolve, the UAE’s CEPA-driven approach underscores its commitment to open markets, economic diversification, and international cooperation. For investors, exporters, and multinational businesses, the strengthening of UAE–Latin America trade ties presents new opportunities to expand, collaborate, and grow within a stable and strategically connected jurisdiction.
