Concluding remarks by the Chairperson

The fourth Trade Policy Review of the United Arab Emirates has provided us with a good opportunity to understand the trade and related policies of the UAE and the changes since its last Review in 2016. The review has benefitted from the constructive and informative participation of the delegation of the UAE, headed by H.E. Dr Ahmad Belhoul Al Falasi, Minister of State for Entrepreneurship and Small and Medium Enterprises, the insightful comments of the discussant, H.E. Ambassador José Valencia, Permanent Representative of Ecuador to the WTO, and the comments made and issues raised by the 41 delegations that took the floor during this meeting. I would also like to take this opportunity to thank the delegations that prepared advance written questions.

Members generally expressed appreciation for the strong management of the UAE's economy over the review period, including during the COVID-19 pandemic. They commended the UAE for the structural reforms undertaken pursuant to its long-term development strategies, the Vision 2021 National Agenda, and the recently launched UAE Centennial 2071, which are aimed at diversifying the economy away from the hydrocarbons sector to a knowledge-based economy. Members highlighted the UAE's efforts to promote innovation and digital transformation and to increase renewable energy generation and reduce emissions, including via its Net Zero Initiative. Some Members noted the significant progress made by the UAE with respect to the role of women in the economy, as evidenced by recent legislation on gender equality. Some Members also congratulated the UAE for hosting EXPO Dubai 2020.

Overall, Members expressed strong appreciation for the relatively open trade policy environment of the UAE, acknowledging continued reforms in the area of trade facilitation, opportunities offered by the free zones regime, and recent private sector reforms such as the removal of many foreign ownership restrictions in the context of the new Commercial Companies Law. Some Members noted how the UAE's recent trade and investment policies had enabled it to become a regional trade and investment hub.

Members positively noted the strong participation of the UAE in the WTO and the multilateral trading system, including participation in two of the Joint Statement Initiatives (one on e-Commerce and one on Investment Facilitation for Development), its active support for a multilateral response to the COVID‑19 pandemic, and participation in the Buenos Aires Declaration on Trade and Women's Economic Empowerment. Several Members encouraged the UAE to further strengthen its leadership role by joining other initiatives such as the Joint Statement Initiatives on MSMEs or Services Domestic Regulation, or various working groups. Some Members also encouraged the UAE to join the Information Technology Agreement Expansion, the ITA-II, and the Agreement on Government Procurement.

While many Members expressed appreciation for the recent efforts to improve the UAE's notification record and the submission of numerous notifications, they nevertheless encouraged the UAE to submit pending transparency notifications, including in the areas of import licensing, customs valuation, and market access as soon as possible.

Several areas of interest and concern were identified. Members highlighted the overall simple tariff structure, but attention was drawn to the relatively high agricultural tariffs and the existence of applied duties higher than bound duties, in particular for “special products”. Members raised questions regarding certain SPS measures and technical regulations, the certification of halal products, the Emirates Quality Mark, labelling requirements, or requirements for the consularization of documents. More specifically, many Members raised concerns regarding the GCC system of excise duties on certain beverages, asking detailed questions regarding the operation and future developments of the system, including consultations with WTO Members.

Other concerns raised included the role of the State in the economy via state-owned enterprises and government-related entities, including transparency regarding financial operations, the enforcement of intellectual property rights, and government procurement practices at the federal and local levels, including the participation of MSMEs and foreign companies. Members were keen to learn more about the functioning and regulatory framework in free zones, including financial or other free zones. Members were also interested in obtaining a better understanding of sector-specific support provided by the Government, including in agriculture.

Some Members requested further information regarding the definition of sectors of “strategic impact” under the new Commercial Companies Law. Several Members also inquired whether the UAE would further liberalize trade in services, particularly by further relaxing investment restrictions in financial services, telecommunications, maritime, and medical services. The need to improve procedures for the resolution of commercial disputes was mentioned by some Members.

Many Members stressed the importance of their bilateral trade and investment relationships with the UAE, and pointed to ongoing or recently finalized negotiations on trade, investment, or comprehensive economic partnership agreements. In this regard, some Members also encouraged the UAE to deepen, together with other GCC member States, the harmonization of rules and standards affecting certain goods and simplify their application at the border. For some Members, movement of workers is a key aspect of their relationship with the UAE.

This Review was characterized by open and constructive discussions. As highlighted by the UAE Head of Delegation, the discussant, and many Members, it offered an opportunity to comment on and review policies with the objective of contributing to policy improvement going forward. In this regard, I hope that the authorities find the questions received and comments shared during this review to be helpful.

The UAE has received over 700 written questions as of 22 March, out of which 488 were submitted within the established deadline. Insofar as the UAE has not yet replied to some of the advance written questions submitted before the deadline, I would like to request it to do so as soon as possible. Regarding all other outstanding and follow-up questions, the UAE is expected to provide its responses within one month, when this Review will conclude.