UAE–Korea Comprehensive Economic Partnership Agreement (CEPA)
Date of publication: May 11, 2026.
The UAE–Republic of Korea Comprehensive Economic Partnership Agreement (CEPA) was signed on 29 May 2024 and entered into force on 1 May 2026. It reflects the two countries' shared ambition to deepen trade, investment, and broader economic cooperation through a modern, high-standard framework. The agreement is designed to support sustainable economic growth, diversify bilateral trade, address non-tariff barriers, strengthen services trade, and facilitate investment flows.
Designed as a next-generation trade agreement, the CEPA goes beyond tariff liberalisation and covers
18 chapters
and annexes, including trade in goods and services, investment, strategic economic cooperation, customs procedures, trade facilitation, intellectual property, digital trade, government procurement, and investment facilitation. It also creates an institutional framework for administration and implementation, together with a mechanism for state-to-state dispute settlement.Key regulatory and trade changes
The CEPA delivers substantial tariff liberalisation in goods trade. According to the Ministry of Economy & Tourism, the parties committed to eliminating or reducing customs duties on
approximately 91.2% of tariff lines
, with duties to be progressively removed over a period of up to 10 years
. The agreement also includes disciplines on national treatment, the elimination of non-tariff restrictions, and transparent administration of import and export measures consistent with WTO obligations.For rules of origin, the CEPA introduces business-friendly criteria to determine eligibility for preferential tariff treatment. For manufactured products, it applies a "sufficient working or processing" rule, which may be satisfied through a change in tariff classification or where processing results in a value content of at least
40% of FOB price
. The agreement also includes product-specific origin rules for certain goods.The CEPA further supports trade facilitation by promoting transparency, advance rulings, risk management systems, and more efficient border procedures. In services, it establishes binding market access and national treatment commitments across specified sectors and strengthens predictability through domestic regulation disciplines. The Ministry highlights improved opportunities in professional services, telecommunications, financial services, transport and logistics, and tourism.
In digital trade, the CEPA supports cross-border data flows, prohibits customs duties on electronic transmissions, and promotes paperless trade, e-authentication, and digital documentation. It also contains provisions to enhance intellectual property protection, government procurement access, and investment transparency.
Potential impact on businesses
- Reduced or eliminated customs duties on a large share of qualifying goods.
- Improved market access for exporters and traders in both countries.
- Greater predictability in customs and trade procedures.
- Expanded opportunities in services sectors such as ICT, finance, logistics, tourism, and professional services.
- Stronger digital trade enablement through paperless and e-authentication provisions.
Tariff elimination categories
Category | Tariff Elimination Provision | Number of HS (UAE) |
|---|---|---|
(A) | Duty-free immediately | 3830 |
(B) | Eliminated over 5 years | 953 |
(C) | Eliminated over 10 years | 2385 |
(X) | No reduction (base rate) | 546 |
PH | Prohibited goods | 34 |
SG | Special goods | 104 |
TR | 50% reduction over 5 years | 4 |
Conclusion
The UAE–Korea CEPA represents a significant regulatory and commercial development, offering enhanced market access, lower tariffs over time, stronger trade facilitation, and wider opportunities in services, digital trade, and investment. Businesses that align their customs, origin, and compliance processes with the agreement's requirements will be best positioned to benefit from the new preferences and reduced trade friction.
These changes have been updated in ONESOURCE Global Trade Content. For more information on how ONESOURCE Global Trade solutions can assist you in managing supply chain risk, tariff challenges and regulatory compliance, please contact your Account Manager or Customer Success Manager.