Aiming to Expand Trade Cooperation Between the EU and UAE

Expand Trade Cooperation Between the EU and UAE

 EU Chief Trade Commissioner Confirms Launch of Free Trade Talks with UAE

EU Chief Trade Commissioner Maroš Šefčović confirmed the launch of formal talks on a free trade agreement with the United Arab Emirates, a move that reflects both sides' desire to strengthen economic relations and expand trade cooperation.

This move complements the European Union's announcement that it had reached an agreement with the UAE to begin free trade talks, amid the turmoil and uncertainty caused by US President Donald Trump's decision to impose tariffs, some of which were later reversed.

UAE and EU Launch Economic Partnership Negotiations

Also in April, European Commission President Von der Leyen held a phone call with UAE President Sheikh Mohammed bin Zayed Al Nahyan, during which they agreed to begin negotiations on a free trade agreement.

The EU is the UAE's second-largest trading partner, accounting for 8.3% of the country's total non-oil foreign trade. In 2024, the value of non-oil trade between the two sides reached $67.6 billion, a growth rate of 3.6% compared to the previous year. The UAE is also the largest investment partner and export destination for the European Union in the Middle East and North Africa region.

The Emirates News Agency states that "by reducing customs duties and unnecessary barriers to trade and improving market access for goods and services, the Comprehensive Economic Partnership Agreement between the UAE and the European Union is expected to open new horizons for cooperation in key sectors, including advanced manufacturing, healthcare, logistics, artificial intelligence, and others."

A Step to Boost Businesses

Al Arabiya's correspondent in Brussels, Noureddine Al-Faridi, said that the European Union has intensified its efforts since the beginning of last April to seek new trading partners and conclude free trade agreements, especially after President Donald Trump announced the imposition of customs duties on several global partners, which prompted the EU to diversify its network of trade agreements.

In this context, intensive discussions took place, most notably the call between European Commission President Ursula von der Leyen and UAE President Sheikh Mohammed bin Zayed. These efforts culminated in an agreement between European Trade Negotiator Maroš Šefković and UAE Minister of State for Trade Dr. Thani bin Ahmed Al Zeyoudi on a roadmap to launch negotiations for a free trade agreement between the two sides in early June.

He stated that the volume of trade between the UAE and the European Union amounts to more than €50 billion in goods, and €39 billion in financial and digital services, bringing the total to nearly €100 billion, excluding direct investments.

He added that through this agreement, and other agreements with countries such as Singapore, ASEAN countries, South Korea, and Japan, the European Union seeks to diversify its partners and reduce reliance on trade relations that can be affected by political fluctuations.