UAE hedges against global economic volatility with EU trade agreement
The UAE is doubling down on bilateral free trade agreements as it hedges against economic headwinds fueled by the United States' universal tariff policy.
DUBAI — The United Arab Emirates’ plans to accelerate negotiations for a free trade agreement with the European Union — without involving the broader Gulf Cooperation Council — come as the Gulf state seeks new deals amid heightened global economic volatility and fears of a deep recession sparked by a cross-border tariff war.
UAE President Sheikh Mohamed bin Zayed and EU President Ursula von der Leyen announced upcoming talks following a phone call last Thursday, though no timeline for the talks has been given.
The talks come as the UAE, which has been frustrated by a lack of progress toward a joint GCC-EU free trade agreement, has decided to go solo. The UAE's version of an FTA is called the Comprehensive Economic Partnership Agreement, which it first signed with India in 2022. It has signed a CEPA with around 20 countries since. A trade deal with the EU's 27 members would open doors to freer trade with the bloc's $20.5 trillion economy.
In a readout following the call, the European Commission noted that upcoming discussions would focus on "liberalizing trade in goods, services and investment, while deepening cooperation in strategic sectors such as renewable energy, green hydrogen and critical raw materials."
