UAE & European Union to Negotiate Major Free Trade Deal
Key areas of focus for the negotiations will include advanced manufacturing, healthcare, logistics, renewable energy, green hydrogen, and critical raw materials.
The UAE and the European Union (EU) have officially agreed to begin negotiations for a free trade agreement, signaling a pivotal moment in the strengthening of bilateral relations between the two parties. The announcement came after a phone conversation between European Commission President Ursula von der Leyen and His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the UAE, on April 10th, 2025. The goal of these talks is to establish a Comprehensive Economic Partnership Agreement (CEPA), aimed at reducing tariffs, eliminating trade barriers, and enhancing market access for goods and services across multiple sectors. Key areas of focus for the negotiations will include advanced manufacturing, healthcare, logistics, renewable energy, green hydrogen, and critical raw materials. By addressing these sectors, the agreement is poised to bolster trade and cooperation, driving innovation and development in the UAE and the broader EU market. This move is significant as the EU stands as the UAE's second-largest trading partner, accounting for 8.3% of the UAE’s total non-oil trade. Additionally, the UAE is the EU's largest export destination and the leading investment partner in the Middle East and North Africa (MENA) region. In the context of shifting global trade dynamics, this initiative is expected to create an open and efficient trade environment, promote economic growth, and unlock new opportunities in key industries. By improving market accessibility and fostering collaboration, the UAE and EU are set to build a more resilient economic partnership that will benefit both regions.
