The EU and UAE have commenced talks on a bilateral free trade agreement, aiming to enhance trade in goods, services, and strategic sectors, marking a significant milestone in EU-Gulf relations.
The European Union (EU) and the United Arab Emirates (UAE) have officially commenced negotiations for a bilateral free trade agreement, marking a significant step towards the first comprehensive EU trade deal in the Gulf region.
This initiative, referred to as a Comprehensive Economic Partnership Agreement (CEPA), aims to liberalize trade in goods, services, and investment, while enhancing cooperation in strategic sectors such as renewable energy, green hydrogen, and critical raw materials.
The EU is the UAE's second-largest trading partner, accounting for 8.3% of the Emirates' non-oil trade, valued at approximately $68 billion in 2024 .
This bilateral approach follows the suspension of broader EU-Gulf Cooperation Council (GCC) trade negotiations in 2008, highlighting a shift towards more targeted agreements with individual Gulf nations.
The negotiations are set to begin next week, with both parties expressing optimism about the potential for strengthened economic ties and mutual growth.
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