In a forward-looking move to enhance international trade and economic resilience, the European Union (EU) and the United Arab Emirates (UAE) have officially agreed to launch negotiations for a Free Trade Agreement (FTA). This milestone comes at a crucial time, as countries worldwide reassess trade strategies in light of recent tariff adjustments introduced by the United States.
During a cordial phone discussion between European Commission President Ursula von der Leyen and His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the UAE, both leaders affirmed their commitment to strengthening bilateral ties through a Comprehensive Economic Partnership Agreement (CEPA). The agreement is expected to address tariff barriers and expand cooperation across key industries such as renewable energy, green hydrogen, logistics, advanced manufacturing, healthcare, and artificial intelligence.
This trade initiative demonstrates a proactive response to shifting global trade dynamics and tariff pressures. By working together to reduce duties and improve market access, the EU and UAE aim to secure mutual growth and ensure supply chain stability.
The EU currently ranks as the UAE’s second-largest trading partner, representing 8.3% of the Gulf nation’s total non-oil trade. In return, the UAE is the EU’s largest export market and investment destination in the Middle East and North Africa, positioning both economies to benefit substantially from more streamlined trade.
This step reflects a shared commitment to open markets, trade diversification, and sustainable development. As negotiations begin, the EU-UAE trade partnership is set to become a benchmark for global economic cooperation in a rapidly evolving trade landscape.
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