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Home World News Middle East

UAE and European Union agree to launch free trade talks

April 10, 2025
in Middle East
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The talks will focus on trade in goods, services, investment and deepening cooperation in strategic sectors including renewable energy, green hydrogen and critical raw materials [GETTY]

The European Union and the United Arab Emirates have agreed to launch free trade talks, the EU and UAE said on Thursday, amid the upheaval and uncertainties created by US President Donald Trump’s decision to impose tariffs. He has since walked back some of the tariffs.

“Today, (the European Commission) President von der Leyen held a cordial phone call with His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the United Arab Emirates. During their discussion, they agreed to launch negotiations on a free trade agreement,” the EU said in a statement.

The talks will focus on trade in goods, services, investment and deepening cooperation in strategic sectors, including renewable energy, green hydrogen and critical raw materials, the EU said.

The UAE’s president also said that the agreement to launch talks towards a Comprehensive Economic Partnership Agreement (CEPA) with the EU is aimed at deepening bilateral relations and promoting economic growth.

By reducing tariffs and unnecessary trade barriers and improving market access for goods and services, the pact is expected to foster opportunities in key sectors, including advanced manufacturing, healthcare, logistics, and artificial intelligence, UAE’s state news agency (WAM) said.

The EU is the UAE’s second-largest trading partner, accounting for 8.3 percent of the Emirati total non-oil trade. The wealthy Gulf state is also the EU’s largest export destination and investment partner in the Middle East and North Africa, WAM added on Thursday.

The UAE, an influential, oil-rich Middle East state, has long advocated deeper EU involvement in the Gulf region. It is the Arab world’s second-largest economy after Saudi Arabia, a major Middle East trade partner for many other nations, and its sovereign wealth funds rank among the world’s most active.

Reuters exclusively reported in March 2024 that Abu Dhabi was quietly urging the EU to start talks on a trade pact separate from the Gulf Cooperation Council (GCC), an Arab bloc that includes the UAE and Saudi Arabia.

(Reuters)

Tags: European Uniontrade dealsUAE
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