The European Union and the United Arab Emirates (UAE) have formally begun negotiations on a bilateral free trade agreement. The negotiating teams are initially focusing on reducing tariffs on goods and promoting digital trade. The European Commission announced this on Wednesday. If the negotiations succeed, this would be the EU's first major trade agreement in the Gulf region.
The discussions also explore opportunities to stimulate trade in renewable energy, green hydrogen, and critical raw materials. The current trade in goods between the EU and the UAE is valued at 55 billion euros, with services trade accounting for approximately 39 billion euros.
The EU primarily exports cars, machinery, chemicals, and food products. The UAE's highest tariffs currently apply to tobacco, wine, spirits, and confectionery. The UAE's exports to the EU include oil, gas, and base metals.
European Commission President Ursula von der Leyen described the agreement as a 'significant milestone,' offering new opportunities for EU businesses and in areas important to EU citizens, such as renewable energy and digital technologies.
