UAE President And European Commission President Initiate Negotiations For Comprehensive Economic Partnership Agreement

The UAE President, His Highness Sheikh Mohamed bin Zayed Al Nahyan, and the European Commission President, Her Excellency Ursula von der Leyen, have agreed to start talks on a Comprehensive Economic Partnership Agreement (CEPA) between the UAE and the European Union. This decision was made during a recent phone conversation between the two leaders.

His Highness highlighted the strong relationship between the UAE and EU, emphasising their commitment to enhancing these ties for mutual benefit, particularly in economic areas. He stated that initiating CEPA negotiations reflects a shared goal to maximise cooperation potential and boost economic, trade, and investment connections to support development objectives.

Her Excellency Ursula von der Leyen also noted the robust ties between the UAE and EU. She mentioned that starting CEPA negotiations signifies a move towards a more dynamic phase in their economic collaboration. This agreement is expected to open new cooperation avenues, increase trade and investment flows, and strengthen business partnerships on both sides.

The announcement follows a Joint Statement of Intent signed by His Excellency Dr Thani bin Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade, and His Excellency Valdis Dombrovskis, EU Commissioner for Trade. This statement marks the official commencement of negotiations on the UAE-EU Comprehensive Economic Partnership Agreement.

The European Union is a significant trading partner for the UAE, being its second-largest. It accounts for 8.3% of the UAE's total non-oil trade. In 2024, non-oil trade between these regions reached USD 67.6 billion, showing a growth of 3.6% from the previous year.

Impact on Key Sectors

The CEPA aims to reduce tariffs and eliminate unnecessary trade barriers while improving market access for goods and services. This is anticipated to create opportunities in sectors like advanced manufacturing, healthcare, logistics, and artificial intelligence.

The UAE stands as the EU's largest export destination and investment partner in the Middle East and North Africa region. The agreement is expected to further solidify this position by fostering stronger economic ties.

This development underscores a common vision shared by both parties focused on stability, growth, and prosperity through enhanced economic collaboration.

With inputs from WAM