UAE-Japan trade pact aimed at boosting Japanese car exports

The trade pact negotiated last week by the UAE and Japan should strengthen Japanese auto exports by gradually removing tariffs.

The agreement calls for the UAE to eliminate duties on many finished cars from Japan within seven years, easing costs for manufacturers such as Toyota, Nissan and Honda, Nippon reports.

Japanese officials say the deal will help their companies compete more effectively with South Korean automakers, whose country already has a similar trade agreement with the UAE spaced over 10 years.

The UAE has become Japan’s biggest trading partner in the Middle East and Africa, making the Gulf market increasingly important for Japanese car exports.