Australia announced on Tuesday that it had finalised a trade agreement with the United Arab Emirates, which will eliminate tariffs on about 99% of Australian exports. This deal is expected to save Australia A$135 million ($91 million) in the first year alone. The UAE is Australia’s largest trade and investment partner in the Middle East, with bilateral trade valued at A$9.9 billion last year and two-way investment amounting to A$20.6 billion.

Trade Minister Don Farrell highlighted that under the agreement, Australian exports are projected to rise by A$678 million annually. However, he noted that the benefits extend beyond the numbers, as the deal paves the way for stronger economic ties. The agreement includes a framework to enhance investment from Abu Dhabi in critical minerals, and Australia’s mining sector will gain from tariff cuts on alumina exports.

Top Australian exports to the UAE, such as meat, dairy, seafood, and coal, will benefit from this new partnership. The deal, expected to take effect later this year, was praised by the Australian Meat Industry Council, which said it would provide greater market access for Australian beef, lamb, and goat meat producers. UAE Minister of Foreign Trade Thani Al Zeyoudi also celebrated the agreement, calling it a landmark in fostering cooperation and new opportunities between the two nations.