The goal of the FTA is to remove restrictions and fees that limit member nations’ ability to do business with one another. It focuses on a common position on trade terms, taxation, and limitations.

The world is now moving towards a collaborative approach where trade or business is no longer limited to nations. It offers flexibility to people of another country to invest in other nations to maximize benefits while availing the best of the facilities to infuse growth of the organization in the global economy. In this blog, we will look at the concept of FTA agreements and also touch upon one of the unique initiatives of UAE, which is influenced by the notion of Free Trade in the global economy. 

What are the Benefits of International Free Trade Agreements?

The benefits of free trade are that consumers are offered better access to higher-quality foreign goods with better pricing, and prices fall when governments lower or eliminate extra taxation or import duties. Manufacturers can gain a much wider market of potential customers or suppliers, expanding their reach of the market to boost the economy. Free trade zones can also promote the economic development of all countries, benefiting part of the population by increasing the standard of living. 

Free trade can assist nations in increasing employment possibilities in the economy. It also allows the cross-border exchange of goods and services while offering lucrative benefits to organizations.

How UAE accelerates efforts for FTAs within the country to boost International Business?

The UAE has established flexible laws and offers a wide range of advantages to people starting their business or startup in Dubai. It has FTA or Free Trade Areas to offer ease of doing business for organizations with the effort towards amenities like- workspace, access to trade links, simplified regulations, and tax benefits. People from outside the country can also invest in UAE and even register a business while availing of great benefits like- Golden Visa, Tax-Free Income, Access to a Business environment, and lots more. 

Which Countries have an FTA agreement with the UAE?

The UAE has these two common Free Trade Agreements, which are as follows:

1. GAFTA:  It consists of agreements with Arab nations like Kuwait, Bahrain, Lebanon, Morocco, Syria, Palestine, etc.

2. CECPA: It consists of a partnership with Mauritius under the India-Mauritius Comprehensive Economic Corporation. This was jointly signed by India and UAE.

Benefits of Free Trade Agreement for UAE

Here are some of the benefits of FTA for UAE which are as follows:

  1. It helps in reducing customs duties and allows a larger volume of trade in the international sphere, which benefits both countries and businesses.
  2. It fosters foreign investment in the country while also improving the image in terms of economic purview. 
  3. It makes UAE a global hub for economic activities and trades, offering support to larger markets and organizations from different countries to do business in UAE.

Free Trade is a boon for countries in the global business ecosystem and it enforces a better way of doing business with advantages for business, country, and government.