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Korea, UAE agree on early implementation of bilateral CEPA in move to shore up naphtha supplies

Published: 03 Apr. 2026, 20:19 Updated: 04 Apr. 2026, 09:23

Korean Trade Minister Yeo Han-koo, left, shakes hands with the United Arab Emirates' undersecretary of the Ministry of Foreign Trade, Fahad Al Gergawi, during the World Trade Organization ministerial conference in Cameroon on March 29 in this photo provided by Yeo's office. [YONHAP]

Top trade officials of Korea and the United Arab Emirates (UAE) agreed Friday on an early implementation of their comprehensive economic partnership agreement (CEPA), Seoul's industry ministry said.

The agreement was made during a virtual meeting between Trade Minister Yeo Han-koo and his UAE counterpart, Thani bin Ahmed Al Zeyoudi, just a few days after the National Assembly ratified the trade pact, according to the Ministry of Trade, Industry and Resources. The bilateral deal will take effect on May 1.

Under the CEPA, the two countries plan to lift tariffs on more than 90 percent of goods trade over the next 10 years, including Korea's exports of foodstuffs, cosmetics and defense products and the UAE's exports of crude oil.

The agreement will also help Korea strengthen its energy and resource cooperation with the UAE, which is important amid intensifying global supply chain uncertainty.

In Friday's meeting, Yeo asked the UAE, the largest naphtha supplier to Korea, to help secure supplies of the material, while also asking for support to Korean companies exporting to the country, the ministry said.

Korea has been facing disruptions in naphtha supplies since the start of U.S.-Israeli attacks on Iran and subsequent retaliation, which has led to the effective closure of the Strait of Hormuz.

“The Korea-UAE CEPA, Seoul's first FTA with an oil-producing country in the Middle East, will serve as an important opportunity for the two countries to elevate their economic cooperation,” Yeo said in a press release, vowing continued efforts to expand strategic ties with the UAE.

Yonhap