Brussels, May 29 – The European Union (EU) and the United Arab Emirates (UAE) have officially initiated discussions on a bilateral Free Trade Agreement (FTA), signaling a significant step towards the EU’s inaugural comprehensive trade arrangement in the Gulf region, according to the European Commission.
This initiative is also designed to enhance the EU’s global trade framework, which currently includes 44 agreements with 76 nations, as stated by the Commission on Wednesday.
As outlined in a release from the Commission, the EU’s Trade and Economic Security Commissioner, Maros Sefcovic, and UAE’s Minister of State for Foreign Trade, Thani bin Ahmed Al Zeyoudi, convened in Dubai to reinforce their common objectives for the agreement and to establish a roadmap. Substantial work is anticipated to commence as soon as June.
The initial gatherings of the negotiating teams will prioritize the reduction of tariffs on goods and the facilitation of services, alongside advancements in digital trade and investment flows, according to reports from Xinhua news agency.
The discussions will also seek to enhance trade in strategic industries, including renewable energy, green hydrogen, and essential raw materials.
Sefcovic highlighted that the establishment of a bilateral FTA would create “immense business prospects” for companies in both Europe and the UAE, and would also strengthen the EU’s involvement with member states of the Gulf Cooperation Council (GCC).
European Commission President Ursula von der Leyen praised the commencement of the negotiations as a “notable achievement,” emphasizing that the agreement would fortify EU-Gulf relations, offer new opportunities for European businesses, and enhance collaboration in vital sectors such as renewable energy and digital technologies.
In response to the unpredictability of US trade policies, the EU is bolstering partnerships with other economies to encourage trade diversification and lessen its dependency on the United States.
Recently, US President Donald Trump indicated his intention to impose a “straight 50 percent Tariff on the EU, effective June 1, 2025.” However, following a conversation with von der Leyen, he consented to delay the tariff hike until July 9. Trump later commended the EU’s decision to advance negotiations, considering it a constructive move, but reiterated that he would impose trade measures if an agreement is not reached.