UAE Trade Policy: UAE Boldly Confronts Chinese Goods Surge with Strategic Anti-Dumping Measures

UAE Implements Anti-Dumping Measures with UAE Trade Policy as Chinese Goods Flood Markets Amid Global Tariff Turmoil

The United Arab Emirates (UAE) is taking decisive action as global trade storms intensify. In response to a wave of redirected Chinese products flooding its markets, the country has begun implementing anti-dumping measures, a bold step that positions the Emirates as both a protector of local industry and a steady hand in a volatile global economy.

At the World Economic Forum’s Annual Meetings during a session titled “Taming Trade,” UAE Minister of Foreign Trade, Dr. Thani Al Zeyoudi, offered a rare and candid look into how global trade turbulence, shifting tariff regimes, and the unpredictable behavior of major economies are reshaping commerce.

Dr. Al Zeyoudi revealed that the UAE recently took protective action to counteract the growing influx of Chinese goods being redirected from Western markets. “We’re going to continue being open,” he said, “but we started the measures on the seals in the last one week, especially since we’re seeing huge dumping coming from China to our local markets.”

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As the United States and the European Union impose tighter tariffs and restrictions on Chinese exports, those goods are finding new destinations, including the Middle East. The UAE, renowned for its open markets, now faces an unexpected challenge: an oversupply of cheap goods threatening its local producers and traders. For the Minister, the response is about balance. The UAE cannot afford to close its economy, but it equally cannot allow unrestricted imports that undermine domestic industries. “Otherwise,” Al Zeyoudi warned, “we’re going to compensate something against the other.”

The 10% Tariff Baseline: The New Global Normal

In one of his most striking comments, Dr. Al Zeyoudi noted that the 10% U.S. tariff baseline, initially seen as temporary, is now here to stay for the foreseeable future. “The 10 per cent will not go down. So we have to live with that,” he declared, explaining that even direct discussions with Washington suggest no reduction in the next three years.

This baseline is more than just a number. It represents a new phase of global trade realism where protectionism, not liberalization, drives policy. For exporters and importers, this shift means adapting to a world where trade barriers are the norm, not the exception.

The Minister offered insight into how the trade standoff spiraled out of control, a case study in unintended consequences. First, the extreme reactions from China to initial U.S. tariffs triggered a chain reaction across global markets. Rather than limited, targeted measures, the result was a full-blown trade conflict that expanded far beyond Washington’s initial expectations.

Second, the “extreme acceptance” from countries like Vietnam and others in Asia encouraged the U.S. to push harder. As these nations complied with American trade terms, the U.S. administration felt emboldened to demand even more concessions. “The minute that happens,” Al Zeyoudi said, “it encourages them to continue.” The outcome? A trade ecosystem that’s more unpredictable than ever, where even major corporations struggle to plan beyond a few months at a time.

For Dr. Al Zeyoudi, the greatest challenge facing global business is not tariffs themselves, but unpredictability. “This continuous change means no one can stick to a business plan. No one can have a long-term plan, and they have to keep changing their tactics almost weekly, or sometimes daily,” he noted. In an era where global supply chains are being redrawn, and companies constantly react to new rules, this unpredictability is what cripples investment confidence and slows innovation.

Despite the turbulence, the UAE is proving resilient thanks to its proactive trade strategy. Over the past four years, the nation has signed 32 Strategic Investment Partnership Agreements (SIPAs) across continents, an impressive record built on foresight. “Even before Covid, we knew that diversity was going to come. So we started diversifying our investments and trade,” Al Zeyoudi explained. This diversification has paid off. By spreading its trade relationships across Asia, Africa, Latin America, and Europe, the UAE has reduced dependency on any single market, insulating its economy from shocks.

Turning Crisis into Opportunity

Interestingly, the global trade crisis has also unlocked previously stalled negotiations. Countries that once delayed or ignored UAE trade proposals are now responding swiftly.

For instance:

• Mexico is now actively pursuing a free trade agreement.
• Mercosur, once described as “very difficult,” is suddenly moving faster.
• Canada concluded long-stalled investment protection deals within just a month.
• Even the European Union is now negotiating at what Al Zeyoudi described as “a very good pace.”

Sometimes, pressure truly creates progress.

Despite barriers, Dr. Al Zeyoudi remains optimistic about trade’s natural resilience. He used a vivid metaphor: “At the end of the day, trade is like a water stream. You know for sure the water stream is going to find its way. But with this barrier that comes the way, it’s going to turn over around it.” His caution, however, was clear: in the rush to find new trade routes, nations must not abandon traditional partners. The key is diversity with stability, keeping old alliances while building new ones.

The Minister also addressed the declining influence of the World Trade Organization (WTO). While major economies are walking away from WTO rules, smaller and mid-sized economies still see value in the system because it “brings everyone on board.” The WTO’s influence may have weakened, but it remains a crucial framework for ensuring fairness and cooperation, especially among developing and mid-tier economies that rely on structured trade rules.

AI: The Only Solution to Global Trade Turbulence

In what may be his most forward-looking statement, Dr. Al Zeyoudi declared that artificial intelligence (AI) is the only viable solution to the chaos gripping global trade.

“The world was not ready for such huge turbulence,” he said, adding that technology and AI will help nations and companies adapt. From predictive analytics in logistics to automated customs processes and trade forecasting, AI is already proving its worth. The UAE, unsurprisingly, is leading by example. Through the World Economic Forum’s trade technology initiatives, the country is investing in AI-driven trade monitoring systems and policy analytics tools to minimize the impact of shifting tariffs.

Dr. Al Zeyoudi credited the private sector for spearheading the practical use of AI to navigate tariff challenges and inflation. Large multinational firms now use data analytics to re-engineer supply chains, identify tariff-friendly markets, and even create new brands specifically designed to maneuver around restrictions.

“The businesses are changing the brands and coming up with new ones so they can maneuver around the challenges. And how they’re doing it, they’re using analytics of the different data they have,” he said. The UAE, meanwhile, is ensuring these innovations don’t lead to tariff evasion or harm local manufacturers, maintaining a delicate balance between openness and protection.

From confronting Chinese dumping to pioneering AI-driven trade management, the UAE continues to prove that agility and foresight define modern economic success. In a time when unpredictability threatens even the biggest economies, the UAE’s measured yet forward-thinking approach positions it as a global model for adaptive leadership. As Dr. Al Zeyoudi put it, “Trade, like water, will always find its way.” And under the UAE’s stewardship, that stream is flowing with strategy, innovation, and purpose.