EU agrees to start trade talks with UAE after Trump tariff war

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The EU and the United Arab Emirates have launched trade negotiations, as countries continue to search for alternative markets due to US tariffs.

European Commission President Ursula von Ter Leyen agreed to the request of the UAE President Sheikh Mohammad Bean Zayed Al-Nahyan during his call on Thursday.

“The UAE shares strong and long ties with the European Union and its Member States, and today we have agreed to start talks with the EU’s comprehensive economic partnership agreement,” Sheikh Mohammed said.

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

At the beginning of this month, President Donald Trump announced that he would hit both the EU and the UAE in the amount of 20% and 10 percent. Since he stopped charges for 90 days to allow negotiations.

The UAE, one of the top 10 oil producers, has been driving a deal with the EU, but Brussels hoped to go on strike with the Persian Gulf Cooperation Council.

In recent years, the UAE has pursued dozens of bilateral trading transactions, which wounds GCC’s slowdown members such as Saudi Arabia and Qatar. Although the EU and the GKK started negotiations on a free trade agreement in 1990, the talks were suspended in 2008.

Emirati State media reported last month that the UAE has been working on 26 comprehensive economic partnership agreements since 2021, six of which have officially “entered into force.” But as his second largest trading partner, in 2024, for $ 67.6 billion for bilateral trade, the EU is especially important for the UAE.

The EU is importing mining products and produces products from UAE and sells IT machines, transport equipment and chemicals.

Abu Dhabi’s energy companies and sovereign resources have made great investments in Europe, a group of large chemicals in Germany to Spain’s solar economies and renewable energy companies in Greece.

“The upcoming talks will affect the liberalization of goods, services and investment, while the deepening of cooperation in the strategic spheres, such as renewable energy, green hydrogen and critical raw materials.”