The European Union (EU) and the United Arab Emirates (UAE) have commenced formal discussions aimed at establishing a free trade agreement. If finalized, this could mark the EU’s inaugural extensive trade pact within the Gulf region, as confirmed by the European Commission.
The talks were set in motion on April 10, during a session between European Commission President Ursula von der Leyen and UAE President Sheikh Mohammed bin Zayed Al Nahyan. On May 28, during a meeting in Dubai, EU Trade and Economic Security Commissioner Maroš Šefčovič and UAE Minister Thani bin Ahmed Al Zeyoudi reiterated their commitment to forging a mutually beneficial agreement. The initial round of negotiations is slated for June.
Ursula von der Leyen remarked, “This represents a significant advancement. We are developing an agreement that will enhance collaboration between the EU and the Gulf region, create fresh business opportunities, and encourage advancements in renewable energy and digital technologies.”
During the negotiations, both parties aim to lower tariffs on goods, streamline trade in services, facilitate investment flows, and enhance digital trade. Topics of discussion will also include critical sectors like green energy, hydrogen, essential raw materials, artificial intelligence, financial technology, healthcare, infrastructure, and food systems.
Presently, the trade volume of goods between the EU and the UAE stands at around 55 billion euros annually, while service trade is estimated at about 39 billion euros. The UAE is recognized as the EU’s key trading ally in the region and a significant destination for European investments, totaling 186 billion euros.
The EU primarily exports vehicles, machinery, chemical products, food, and green technologies to the UAE. In contrast, the UAE exports oil, gas, and metals to the EU.