On the 28th, the European Union and the United Arab Emirates officially launched negotiations for a bilateral free trade agreement, creating the possibility for the EU to conclude its first comprehensive trade agreement in the Gulf region.

Maroš Šefčovič, European Commissioner for Trade and Economic Security, and Thani bin Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade, reaffirmed their shared vision for reaching an agreement and agreed on a roadmap during their meeting in Dubai today. Substantive negotiations are expected to begin as early as June.

The first round of negotiations will focus on reducing tariffs on goods, facilitating services, digital trade, and investment flows. The two sides will also explore ways to promote trade in strategic areas such as renewable energy, green hydrogen, and critical raw materials.

European Commission President Ursula von der Leyen stated: “The launch of trade negotiations between the EU and the UAE marks an important milestone. This agreement will help strengthen the EU’s ties with the Gulf region, open up new opportunities for EU businesses, and further consolidate our cooperation in fields such as renewable energy and digital technologies.”

Šefčovič stated that the free trade agreement will bring tremendous business opportunities for companies in Europe and the UAE, and will also strengthen regional cooperation between the EU and the Gulf Cooperation Council countries.

To address the uncertainty surrounding U.S. trade policies, the European Union is strengthening cooperation with other economies and promoting trade diversification in order to reduce its reliance on U.S. trade.