trade policy in uae
Table of Contents
Chapter 1
Introduction
1.1 Background of the study
The UAE became a contracting party to the General Agreement on Tariffs and Trade (GATT) in 1994, and subsequently became a member of the World Trade Organization (WTO) in April of 1996. This engagement with international organizations stems from the UAE’s commitment to international trade and its obligations under the multilateral trade policy regime. Today, the UAE has regulations in place that aim to strengthen the country’s position as an open economy, one that welcomes international trade and competition.
The UAE’s commitment to an open international trade environment is evidenced by several reports released by the WTO. WTO reports found that the UAE’s tariff of 5% was significantly lower than the maximum tariff of 15% that can be charged under international trade regulations. Furthermore, when compared to economies of similar scale the UAE tends to charge even lower rates than those charged by others. These findings further cement the UAE’s claim to an open, competitive, and encouraging trade environment. In addition, the UAE witnessed a 98% increase in exports from 1995 to 2004 compared to a 133% rise in imports. Such increases took place without the use of any WTO-consistent trade remedy laws by the UAE such as invoking any antidumping or countervailing duty against any trading partner.
The UAE 's trade regime is open, with low tariffs and few non-tariff barriers to trade. The UAE’s openness was instrumental to achieving the solid growth registered prior to the global crisis and has facilitated the diversification of economic activity. The investment regime remains considerably more restrictive than the trade regime, as foreign participation in any domestic company or activity is limited to 49% of the capital; however, 100% foreign ownership is allowed in any of the UAE’s free zones.
The global financial crisis brought an end to a period of
Chapter 1
Introduction
1.1 Background of the study
The UAE became a contracting party to the General Agreement on Tariffs and Trade (GATT) in 1994, and subsequently became a member of the World Trade Organization (WTO) in April of 1996. This engagement with international organizations stems from the UAE’s commitment to international trade and its obligations under the multilateral trade policy regime. Today, the UAE has regulations in place that aim to strengthen the country’s position as an open economy, one that welcomes international trade and competition.
The UAE’s commitment to an open international trade environment is evidenced by several reports released by the WTO. WTO reports found that the UAE’s tariff of 5% was significantly lower than the maximum tariff of 15% that can be charged under international trade regulations. Furthermore, when compared to economies of similar scale the UAE tends to charge even lower rates than those charged by others. These findings further cement the UAE’s claim to an open, competitive, and encouraging trade environment. In addition, the UAE witnessed a 98% increase in exports from 1995 to 2004 compared to a 133% rise in imports. Such increases took place without the use of any WTO-consistent trade remedy laws by the UAE such as invoking any antidumping or countervailing duty against any trading partner.
The UAE 's trade regime is open, with low tariffs and few non-tariff barriers to trade. The UAE’s openness was instrumental to achieving the solid growth registered prior to the global crisis and has facilitated the diversification of economic activity. The investment regime remains considerably more restrictive than the trade regime, as foreign participation in any domestic company or activity is limited to 49% of the capital; however, 100% foreign ownership is allowed in any of the UAE’s free zones.
The global financial crisis brought an end to a period of
References: Watson (2005), Introduction. http://en.wikipedia.org/wiki/International_trade Kusum Mundra (October 18, 2010). "Immigrant Networks and U.S CIA World Factbook , 2009 US Department of Commerce, US Census Bureau Created 01-Jan-2009