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EU and UAE Agree to Launch Free Trade Talks
Published by Global Banking & Finance Review®
Posted on April 10, 2025
2 min readLast updated: January 24, 2026
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The EU and UAE have agreed to initiate free trade talks, focusing on goods, services, and strategic sectors, aiming to enhance bilateral economic relations.
EU and UAE Begin Free Trade Negotiations to Boost Economic Ties
BRUSSELS (Reuters) - The European Union and the United Arab Emirates have agreed to launch free trade talks, the EU and UAE said on Thursday, amid the upheaval and uncertainties created by U.S. President Donald Trump's decision to impose tariffs. He has since walked back some of the tariffs.
"Today, (the European Commission) President von der Leyen held a cordial phone call with His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the United Arab Emirates. During their discussion, they agreed to launch negotiations on a free trade agreement," the EU said in a statement.
The talks will focus on trade in goods, services, investment and deepening cooperation in strategic sectors including renewable energy, green hydrogen and critical raw materials, the EU said.
The UAE's president also said that the agreement to launch talks towards a Comprehensive Economic Partnership Agreement (CEPA) with the EU is aimed at deepening bilateral relations and promoting economic growth.
By reducing tariffs and unnecessary trade barriers and improving market access for goods and services, the pact is expected to foster opportunities in key sectors including advanced manufacturing, healthcare, logistics, and artificial intelligence, UAE's state news agency (WAM) said.
The EU is the UAE's second-largest trading partner, accounting for 8.3% of the Emirati total non-oil trade. The wealthy Gulf state is also the EU’s largest export destination and investment partner in the Middle East and North Africa, WAM added on Thursday.
The UAE, an influential, oil-rich Middle East state, has long advocated deeper EU involvement in the Gulf region. It is the Arab world's second-largest economy after Saudi Arabia, a major Middle East trade partner for many other nations, and its sovereign wealth funds rank among the world's most active.
Reuters exclusively reported in March 2024 that Abu Dhabi was quietly urging the EU to start talks on a trade pact separate from the Gulf Cooperation Council (GCC), an Arab bloc that includes the UAE and Saudi Arabia.
(Reporting by Benoit Van Overstraeten; Additional reporting by Enas Alashray and Yomna Ehab; Editing by Makini Brice and Diane Craft)
Key Takeaways
- •EU and UAE agree to start free trade talks.
- •Focus on trade in goods, services, and strategic sectors.
- •Aims to reduce tariffs and improve market access.
- •UAE is the EU's largest export destination in MENA.
- •Talks separate from GCC, enhancing bilateral relations.
Frequently Asked Questions about EU and UAE agree to launch free trade talks
1What is the main topic?
The main topic is the agreement between the EU and UAE to launch free trade talks.
2What will the trade talks focus on?
The talks will focus on trade in goods, services, investment, and cooperation in strategic sectors.
3Why are these talks significant?
These talks aim to deepen bilateral relations and promote economic growth by reducing tariffs and improving market access.
