Description: President of the European Commission, Ursula von der Leyen had a phone call with UAE’s President Sheikh Mohamed bin Zayed Al Nahyan, as they discussed free trade agreement potential in several economic sectors. The Presidents discussed the possibility of free trade in the energy industry, trade and critical raw materials. The EU is UAE’s second largest trade partner, accounting for 8.3% of the total trade which doesn’t include oil and oil-based products. Trade talks would potentially facilitate lower tariffs and stimulate wider cooperation within the healthcare, logistics and manufacturing industries. Initiatives from both sides have been stringed across several years as the UAE has repeatedly lobbied for the EU to engage in bilateral trade negotiations outside of the Gulf Cooperation Council pact.
Impact: Europe continues to diversify its strategic alliance portfolio in face of turbulent markets and uncertainty caused by Trump’s global blanket of tariffs. Highly placed large trade markets such as the UAE would largely benefit from a mutual partnership with the EU and consequently increase its influence and geopolitical stance in the region. Trump’s tariffs have caused larger regions and countries to approach novel strategic alliances which further fuels the interchange of global power dynamics. The EU would continue to bind its economic trade efforts towards lucrative bilateral agreements, while UAE would also continue to adapt to strengthening ties with strategic partners and broaden its investments in several economic sectors.