UAE and EU Launch Talks for Landmark Trade Agreement.

In a significant development for international trade, the United Arab Emirates and the European Union have agreed to begin negotiations on a potential Comprehensive Economic Partnership Agreement (Cepa). This deal, if finalized, would mark a major milestone in UAE-EU relations.

Strengthening Long-Standing Ties

Announcing the move on Thursday evening, UAE President Sheikh Mohamed bin Zayed Al Nahyan emphasized the strong and enduring partnership between the UAE and the EU.

“The UAE shares strong and long-standing ties with the European Union and its member states, and today we agreed to launch negotiations towards a Comprehensive Economic Partnership Agreement with the EU,” Sheikh Mohamed wrote on X.

“Through this agreement, we aim to deepen bilateral relations and promote economic growth for the benefit of our countries and peoples.”

A Strategic Move Amid Global Trade Uncertainty

The announcement comes during a period of global trade volatility, particularly following recent developments such as the suspension of tariffs imposed by US President Donald Trump. Against this backdrop, the UAE continues to push forward with trade reforms and agreements to solidify its global trade footprint.

Since the Covid-19 pandemic, the UAE has signed multiple Cepa deals aimed at enhancing trade opportunities and economic cooperation. A partnership with the EU would be the largest such agreement since the UAE signed a Cepa with India in February 2022.

EU’s Response and Future Focus

In a statement, the European Commission highlighted that President Ursula von der Leyen had spoken to Sheikh Mohamed by phone, welcoming the launch of negotiations.

“This marks a positive step forward in EU-UAE relations and, alongside the negotiation of broader strategic partnership agreements, can serve as a catalyst for stronger ties between the EU and the Gulf Co-operation Council.”

President von der Leyen stressed the EU’s commitment to high-standard trade agreements and mutually beneficial partnerships. The upcoming talks will prioritize trade liberalization across goods, services, and investment, and will focus on collaboration in strategic sectors including:

• Renewable Energy

• Green Hydrogen

• Critical Raw Materials

Taking the Talks Forward

To advance the discussions, EU Trade Commissioner Maros Sefcovic is scheduled to visit the UAE. The EU Commission noted:

“Delivering a modern and ambitious agreement will not only reinforce EU-UAE relations, but also contribute to broader regional prosperity.”

A Strong Trade Relationship

The European Union is currently the UAE’s second-largest global trade partner, with $67.6 billion in non-oil trade in 2024—an increase of 3.6% from the previous year, and 18.1% higher than 2022, according to the UAE Ministry of Foreign Affairs.

The EU now accounts for 8.3% of the UAE’s total non-oil foreign trade, reflecting the importance of a deeper partnership between the two regions.