Abu dhabi: Regional conflict has not derailed efforts to forge closer trade ties but has instead signaled the need to accelerate a free-trade agreement, the European Union's envoy to the UAE has stated.
According to European Union, the UAE and EU are working towards securing the first free trade agreement between the bloc and a Gulf country this year after concluding a sixth round of talks. Ambassador Lucie Berger emphasized the urgency of the agreement, stating, "We haven't been derailed by the geopolitical shifts in the region. On the contrary, I think we are even more serious, if it was at all possible, about concluding the agreement."
The outbreak of the Iran war on February 28 and the closure of the Strait of Hormuz have disrupted trade and led to a global surge in prices. This has significantly impacted both the European and Gulf economies. Berger expressed hope for continued cooperation, particularly in energy discussions, amid the ongoing conflict.
Iran has blockaded the Strait of Hormuz in its conflict with the US and Israel, resulting in seized vessels and exchanged weapons fire between Tehran and Washington. Despite these tensions, artificial intelligence, renewable energy, and cybersecurity remain key areas of cooperation between the EU and UAE. The goal to finalize the agreement by year's end marks a departure from the EU's historically lengthy negotiation processes.
Berger highlighted the potential for a strategic partnership agreement, which would include a defense and security chapter, acknowledging the regional conflict's impact. The UAE is currently the EU's largest export destination and investment partner in the region, with bilateral trade in goods estimated at £57 billion ($67 billion).
Expressing solidarity with the UAE amid Iranian attacks, Berger thanked the country for its protection of European citizens. Since the regional war's onset, the UAE has defended against numerous missile and drone attacks from Iran. Despite a ceasefire, Tehran resumed strikes on the UAE this week.
EU support for the UAE has been robust, with high-level visits from European Council President Antonio Costa, EU foreign affairs minister Kaja Kallas, and Gulf special representative Luigi di Maio. Berger noted the UAE's assistance in repatriating European tourists stranded due to airspace closures and flight cancellations.
Amid heightened tensions, the US military launched Project Freedom to escort commercial ships through the Strait of Hormuz, with France moving its Charles de Gaulle aircraft carrier to the Red Sea as a de-escalatory gesture. The EU is considering replicating its Red Sea naval force, Operation Aspides, in the Gulf, with hopes for a diplomatic resolution between the US and Iran.
The EU is also exploring enhanced defense cooperation with the UAE, highlighted by the first EU defense technology forum held in Abu Dhabi. Berger described this as an area ripe with new opportunities, with high interest in the initiative.
The conflict has also opened avenues for collaboration with Ukraine, particularly in countering Iranian drones. Ukrainian experts have been dispatched to the Gulf to share insights, as the same Shahed drones used by Iran were sold to Russia for use in the Ukraine conflict. Berger noted the emerging trilateral defense partnership among the EU, Ukraine, and the UAE.