UAE and EU launch trade deal talks amid global uncertainty

The UAE and the European Union have officially agreed to begin negotiations on a Comprehensive Economic Partnership Agreement (CEPA) — a move set to become a landmark moment in their bilateral ties.

President Sheikh Mohamed bin Zayed made the announcement on Thursday, highlighting the UAE’s longstanding relationship with the EU and the mutual goal of promoting economic growth.

The talks come at a critical time for global trade, as protectionist measures — including U.S. President Donald Trump’s recently paused tariffs — fuel uncertainty in international markets.

Since the COVID-19 pandemic, the UAE has signed a series of CEPA agreements with key partners to expand trade and investment. A deal with the EU would be the most significant since its CEPA with India in 2022.

The European Commission confirmed the development, with President Ursula von der Leyen speaking to Sheikh Mohamed by phone."This marks a positive step forward in EU-UAE relations,” the Commission said, noting the agreement could also help advance broader Gulf-EU cooperation.

Negotiations will target liberalizing trade in goods, services, and investment, with a strong focus on strategic sectors like renewable energy, green hydrogen, and critical raw materials.

EU Trade Commissioner Maros Sefcovic is set to visit the UAE soon to push talks forward.

The EU is already the UAE’s second-largest trading partner, with $67.6 billion in non-oil trade in 2024 — an 18% increase since 2022. It now accounts for over 8% of the UAE’s total non-oil foreign trade.