United Arab Emirates – Trade Barriers in International Trade

The trading system of UAE is open having lower tariff or non-tariff trading barriers. These UAE’s trading policies are serving as a means to achieve the actual growth earlier than any potential worldwide economical crisis and have supported the variations of economic activities. The investment system in UAE is more restrictive to a great extent than the trading system for example, foreign sharing in any local business or business activity is restricted to 49% of capital; on the other hand, it is permitted to get 100% ownership of any business or business activity in UAE if the company is located in a free zone.

Trading barriers in UAE

Business men doing trading from one Country with business men from other country normally have to face some trading barriers. These barriers are tariff (general ones) and non-tariff. Generally, the UAE’s trading system is open with fewer trade barriers in international trade.

The Unified Economic contract among GCC members allows eliminating more or less every trade barrier among them; on the other hand, there’re a few conditions causing imposition of trading restrictions. For example, product that is not allowed to be imported or exported in any member country will be cause to undergo applicable local regulations not to withstand the elimination of trade barrier.

Tariffs and non-tariff trade barriers in international trade

Tariff rates are continually reviewed and are cause to undergo changes without any notice. So, it is strongly recommended to reconfirm about tariff rates earlier than trading in United Arab Emirates (UAE).

Many free trading zones in UAE have been created, where custom taxes need to be paid. Products can only be traded by a business entity that is listed officially in the UAE.

Consistent with the custom law, all goods that meet the GCC regulations can be imported where one needs not to pay any custom duty. On the whole, UAE charges 5% as a basic custom duty on all imports made from out of GCC member countries expect from countries with joint trading agreement or other worldwide commitment.

Countervailing measures and anti dumping duties

UAE together with GCC member countries has formally signed the GCC Law regarding anti dumping duties and countervailing measures. The GCC Laws seek to give consistent safety to industries of GCC counties from unfair international trading for example dumping (unreasonable prices of imported goods), countervailing subsidy, anti dumping duty calculation and an unjustifiable raise of the imports of some products (for which safeguard rules are imposed).

The countervailing measures described according to common law of GCC are applicable only to imports of goods from non-GCC counties. With respect to GCC law nature, UAE cannot force these countervailing measures against imports of goods made from Saudi into the region.

The GCC permanent committee is legally the authority which is empowered to take provisional measures against dumped or subsidized imports as well as against the increased imports while the Ministerial Committee is mandated by the GCC Common Law on antidumping, countervailing and safeguards to take final decisions to impose definitive countervailing duties, anti-dumping duties, or safeguard measures.

For the implementation of above measures, a causal link must be established between the unfair trade practice and the injury caused or threatens to cause to the to GCC Domestic industry.

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