The European Union (EU) and the United Arab Emirates (UAE) have officially commenced negotiations to establish a free trade agreement, which could mark the EU’s inaugural comprehensive trade deal in the Gulf area. This announcement was made by the European Commission.
The process began on April 10 during a meeting between Ursula von der Leyen, President of the European Commission, and Sheikh Mohammed bin Zayed Al Nahyan, President of the UAE. On May 28 in Dubai, Maroš Šefčovič, the EU Trade and Economic Security Commissioner, alongside UAE Minister Thani bin Ahmed Al Zeyoudi, reaffirmed their commitment to reach a mutually advantageous agreement. The inaugural round of talks is slated for June.
“This marks a significant advancement. We are striving for an agreement that will enhance collaboration between the EU and the Gulf region, creating new business opportunities and fostering advancements in renewable energy and digital technologies,” stated Ursula von der Leyen.
During the negotiations, both parties aim to lower tariffs on goods, streamline trade in services, facilitate investment flows, and enhance digital commerce. They will also discuss key sectors including green energy, hydrogen, critical raw materials, artificial intelligence, financial technologies, healthcare, infrastructure, and food systems.
At present, the annual value of goods traded between the EU and the UAE stands at around 55 billion euros, while the services trade amounts to about 39 billion euros. The UAE serves as the EU’s primary trading partner in the region and is a significant destination for European investments, totaling 186 billion euros.
The EU primarily exports cars, machinery, chemical products, food items, and green technologies to the UAE, while the UAE exports oil, gas, and metals to the EU.