South Korea and UAE to reduce import duties and enhance relations | Global News

South Korea and the United Arab Emirates have solidified their trade relationship with the signing of a new trade agreement at a summit on Wednesday. The agreement aims to significantly reduce import duties and strengthen business and investment ties between the two nations.

The summit, attended by UAE President Sheikh Mohammed bin Zayed Al Nahyan and South Korean President Yoon Suk Yeol, focused on key sectors such as energy and defense. The UAE reaffirmed its commitment to invest $30 billion in South Korean businesses, particularly in areas like nuclear power, defense, hydrogen, and solar energy.

One of the major highlights of the agreement is the signing of a letter of intent between the Abu Dhabi National Oil Company and Hanwha Ocean and Samsung Heavy Industries to build at least six LNG carriers valued at around $1.5 billion. Additionally, both countries formally signed a Comprehensive Economic Partnership Agreement that will eliminate tariffs on South Korean arms exports once ratified.

South Korea, aiming to become the world’s fourth-largest defense exporter by 2027, has been actively pursuing global defense equipment contracts. The UAE, on the other hand, will gradually reduce import duties on automobiles over the next decade, while South Korea will eliminate tariffs on crude oil imports.

Overall, the trade agreement is expected to benefit both nations by removing tariffs on over 90% of imports and boosting cooperation in key industries. The UAE also plans to sign similar agreements with Malaysia, Vietnam, and the Philippines in the coming months, further strengthening its trade relationships in the region.