Brussels, May 29 – The European Union (EU) and the United Arab Emirates (UAE) have officially initiated discussions for a bilateral Free Trade Agreement (FTA), a significant step towards establishing the EU’s inaugural comprehensive trade arrangement in the Gulf region, according to the European Commission.
This effort also seeks to further enhance the EU’s global trade framework, which currently includes 44 agreements with 76 countries, as highlighted by the Commission on Wednesday.
As per a statement from the Commission, Trade and Economic Security Commissioner Maros Sefcovic and UAE Minister of State for Foreign Trade Thani bin Ahmed Al Zeyoudi recently convened in Dubai to affirm their mutual goals for the agreement and to outline a strategic roadmap, with meaningful discussions anticipated to commence as soon as June.
The initial meetings between the negotiating teams will focus on lowering tariffs on goods and facilitating services, as well as enhancing digital trade and investment flows, as reported by Xinhua news agency.
Discussions will also consider methods to increase trade in vital sectors, including renewable energy, green hydrogen, and essential raw materials.
Sefcovic noted that a bilateral FTA could open up “significant business prospects” for both European and Emirati businesses, in addition to enhancing the EU’s regional connections with member states of the Gulf Cooperation Council (GCC).
Ursula von der Leyen, President of the European Commission, described the initiation of the negotiations as a “major milestone,” asserting that the agreement would strengthen EU-Gulf relations, create new prospects for European firms, and enhance collaboration in crucial areas like renewable energy and digital technologies.
In light of the unpredictability surrounding US trade policy, the EU is fortifying partnerships with other economies to encourage trade diversification and lessen its dependence on the United States.
Recently, US President Donald Trump indicated that he would recommend a “straight 50 percent tariff on the EU, effective June 1, 2025.” However, following a conversation with von der Leyen, he decided to delay the proposed tariff hike until July 9. On Tuesday, Trump praised the EU’s move to engage in negotiations, viewing it as a positive development, but reiterated that he would implement trade measures should an agreement not be reached.