The UAE has strengthened its economic footprint in Latin America through a series of comprehensive partnership agreements aimed at diversifying trade flows and expanding investment across emerging markets in the region.
“The entry into force of the Comprehensive Economic Partnership Agreement between the UAE and Chile represents a qualitative leap in economic relations between the two countries,” said Karla Flores, Director of InvestChile.
Among the most significant developments is the CEPA with Costa Rica, which came into effect on 1st April 2025. The agreement eliminates or reduces customs duties, facilitates trade in goods and services and opens broader investment opportunities for small and medium-sized enterprises.
UAE expands trade ties with Latin America
The UAE-Chile CEPA entered into force in November 2025, following its signing in July of the previous year. The agreement seeks to enhance non-oil trade and facilitate mutual investments in strategic sectors, including infrastructure, energy, logistics services, food security and technology.
Negotiations are also continuing to conclude comprehensive economic agreements with other countries in the region, including Peru.
Flores explained that the agreement will help accelerate the interest of UAE companies and sovereign wealth funds in the investment opportunities available in Chile, while paving the way for expanding the stock of UAE foreign direct investment in the coming phase.
In statements to the Emirates News Agency, she said the UAE is a key economic partner for Chile within the Gulf region, adding that the agreement builds on a solid institutional foundation that includes the Double Taxation Avoidance Agreement in force since 2023 and the Customs Cooperation Agreement implemented since 2024, both of which enhance investor confidence and support the business environment.
She noted that the agreement is not limited to reducing customs tariffs, but rather provides an integrated framework to promote investment and develop value chains, in addition to establishing mechanisms for dialogue between governments and the private sector, thereby supporting the transition towards long-term investment partnerships with tangible economic and developmental impact.
