EU, UAE Kick Off FTA Talks in Push for Major Gulf Trade Accord
(MENAFN) The European Union (EU) and the United Arab Emirates (UAE) have officially begun negotiations on a bilateral Free Trade Agreement (FTA), in what the European Commission described Wednesday as a major step toward establishing the EU’s first all-encompassing trade accord in the Gulf region.
This move is part of the EU’s broader push to expand its worldwide trade network, which currently includes 44 trade agreements spanning 76 countries, according to the Commission.
In a press release, the Commission confirmed that Commissioner for Trade and Economic Security Maros Sefcovic met with UAE Minister of State for Foreign Trade Thani bin Ahmed Al Zeyoudi in Dubai to reaffirm mutual ambitions for the FTA and agree on a strategic roadmap.
Substantive negotiations are slated to begin as early as June.
Initial discussions between negotiating teams will center on slashing tariffs, enhancing access to services, and streamlining digital trade and investment. Negotiators will also aim to deepen trade ties in strategic sectors such as renewable energy, green hydrogen, and essential raw materials.
Sefcovic stated that a successful FTA would unlock "tremendous business opportunities" for both European and Emirati companies, while also enhancing the EU’s presence and partnerships within the Gulf Cooperation Council (GCC) region.
European Commission President Ursula von der Leyen described the launch of negotiations as a "significant milestone," saying the proposed agreement would not only create new avenues for European businesses but also advance cooperation in key areas like digital innovation and clean energy.
With growing uncertainty surrounding U.S. trade policy, the EU is ramping up efforts to diversify its trade relations and reduce dependence on the United States.
Last Friday, U.S. President Donald Trump declared he is "recommending a straight 50 percent Tariff on the EU, starting on June 1, 2025." However, following a Sunday phone conversation with von der Leyen, he agreed to delay the tariff implementation to July 9. On Tuesday, Trump welcomed the EU’s decision to move forward with FTA discussions, calling it a positive move, though he reiterated his warning to impose trade measures if no agreement is reached.
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