In what could be a major development for both parties, the European Union (EU) and the United Arab Emirates (UAE) have agreed to launch free trade negotiations. Indeed, both sides held a meeting today in which they reached a pivotal agreement, according to a press release.
According to the statement, European Commission (EC) President Ursula von der Leyen spoke with UAE President Sheikh Mohamed bin Zayed Al Nahyan on Thursday. Moreover, the move coincides with the two parties’ continued negotiations for a strategic partnership agreement.
JUST IN: 🇪🇺🇦🇪 European Union and UAE agree to launch free trade negotiations.
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EU and UAE Launch Free Trade Negotiations After Pivotal Meeting
There is no denying that the global economy has faced increased headwinds this year. The United States has set out to balance trade, adopting President Donald Trump’s Liberation Day tariff plan. The move saw various nations and economic blocs respond, leading to an eventual 90-pause of the plan.
However, that hasn’t diminished the potential for resolution by various nations seeking progress in trade negotiations. Indeed, the European Union and the UAE displayed this Thursday, as both sides agreed to launch free trade negotiations.
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Free trade discussions will now see both sides seek to actively eliminate barriers to economic dealings, including tariffs and quotas. Moreover, EC president von der Leyen “emphasized the European Union’s strong track record of delivering high-standard trade agreements and building partnerships based on open trade and mutual benefit,” the Commission said.
The development comes as the bloc has confirmed interest in negotiating a new trade deal with the US. Although it had agreed on a 25% retaliatory tariff on the United States, it paused the action in response to Trump’s decision yesterday. Now, both sides are reportedly set to reengage in talks for a new trade deal.