Global Daily Tax News, EU, UAE To Begin Free Trade Talks In June, (May 30, 2025)

The European Union and the United Arab Emirates (UAE) have formally launched negotiations for a bilateral free trade agreement, which would be the European Union's first comprehensive trade deal with a Gulf state.

Talks are set to begin in June 2025.

The first meetings of negotiating teams will focus on reducing tariffs on goods and facilitating services, digital trade, and investment flows, the EU said.

European Commission President Ursula von der Leyen said: "The launch of EU-UAE trade talks is an important milestone. We will now work together to seal a deal that can benefit our peoples and businesses, bringing us closer together in a spirit of cooperation. Such an agreement would help strengthen ties between the EU and the Gulf region, offering new opportunities for EU businesses while bolstering our partnership in areas that matter to EU citizens like renewable energy and digital technologies."

EU-UAE trade in goods is worth EUR55bn per year. EU exports to the UAE have risen by 15 percent year-on-year and by more than 48 percent since 2019.

UAE exports to the EU include oil, gas, and base metals, while the EU's key exports comprise motorcars, machinery, chemical products, foodstuffs, and increasingly also green technologies.