The trade minister for the United Arab Emirates stated on Monday that the country intends to resume bilateral trade discussions with the European Union before the end of the year.
The Gulf Cooperation Council, an Arab group including Saudi Arabia and the United Arab Emirates, and the European Union are still at odds over negotiations. This has frustrated the UAE, which has privately asked the EU to begin negotiations on a trade agreement outside from the GCC discussions, according to a March report from Reuters.
In an interview with Reuters, Thani bin Ahmed Al Zeyoudi stated, “We initiated the discussion, through both the GCC as well as bilaterally, and we’re getting the support from many of the EU members.”
He stated that bilateral negotiations between the EU and the UAE or the GCC would both be of “added value,” but he expressed optimism that they would be bilateral.
Deeper EU participation in the Gulf area has long been supported by the UAE, a powerful and oil-rich Middle Eastern nation.
In 1990, trade discussions were initiated between the EU and the energy-rich Gulf Cooperation Council (GCC). Should these talks succeed, businesses within the EU would have enhanced access to the EU’s sixth-largest export market. But in 2008, the negotiations were formally put on hold.
A more comprehensive agreement with the GCC may also allow investments from Gulf sovereign wealth funds, significant cross-sector investors with a long-term perspective, into EU member states.
However, the GCC has not signed many trade agreements. 16 years after discussions began, it finalized a deal with South Korea last year, and in 2022 it began talks with Britain.
Additionally, Abu Dhabi’s tight links to Moscow have come under scrutiny from the US, the EU, and other Western allies, who have put pressure on the UAE to demonstrate that it is taking tough measures against businesses who are avoiding sanctions connected to Russia.
According to Al Zeyoudi, before the year is out, the UAE hopes to finalize an agreement on a free trade zone with the Eurasian Economic Union, which is made up of Belarus and Russia.
As per to the minister, that won’t stop the UAE from trying to forge deeper ties with the EU.
He declared, “We’re going to be always keen and open to growing the relationship with anyone.”
