Abu dhabi: Regional conflict has not derailed efforts to forge closer trade ties but has in fact signalled the need to accelerate a free-trade agreement, the European Union's envoy to the UAE has said. The UAE and EU are seeking to secure the first free trade agreement between the bloc and a Gulf country this year following the conclusion of a sixth round of talks.
According to European Union, the envoy, Lucie Berger, expressed that geopolitical shifts in the region have not derailed the negotiations. Instead, these developments have intensified the urgency to finalize the agreement. The recent outbreak of the Iran war and the subsequent closure of the Strait of Hormuz have significantly disrupted trade, causing a global surge in prices. This situation has had a serious impact on both European and Gulf economies, highlighting the necessity for enhanced cooperation in energy and other sectors.
Iran has effectively blockaded the Strait of Hormuz in its ongoing conflict with the US and Israel, leading to vessels being caught in the crossfire. Both sides have engaged in seizing ships and exchanging weapons fire. The EU and UAE are focusing on areas such as artificial intelligence, renewable energy, and cybersecurity as key avenues for cooperation. Ambassador Berger noted that completing the agreement by the end of the year would be a significant departure from the EU's traditionally lengthy negotiation processes.
The ambassador emphasized the potential for expanded ties, including a strategic partnership agreement that could cover defence and security, especially given the regional conflict's context. The UAE remains the EU's largest export and investment partner in the region, with significant bilateral trade and a substantial European expatriate community living in the UAE.
In light of the Iranian attacks, the ambassador expressed solidarity with the UAE and acknowledged the country's role in protecting European citizens. Since the conflict began, the UAE has defended itself against numerous missile and drone attacks from Iran. Despite a ceasefire, Tehran resumed strikes on the UAE recently.
The EU has shown support for the UAE through high-level visits, including by European Council President Antonio Costa and other leaders. The UAE has been instrumental in assisting European tourists stranded due to the conflict, extending accommodation and facilitating repatriation efforts.
Tensions escalated with the US military's Project Freedom, aimed at escorting commercial ships trapped in the Gulf. France has also repositioned its Charles de Gaulle aircraft carrier to demonstrate its willingness to aid in resolving the Hormuz crisis. Ambassador Berger mentioned the potential for the EU's Red Sea naval force, Operation Aspides, to be replicated in the Gulf, while emphasizing hopes for a diplomatic resolution between the US and Iran.
The EU is also exploring increased defence cooperation with the UAE, marked by the recent EU defence technology forum in Abu Dhabi. The situation has opened avenues for collaboration with Ukraine, particularly in countering Iranian drones, with Ukraine sending experts to share knowledge in the Gulf.
The ambassador highlighted the trilateral partnership between the EU, Ukraine, and the UAE in this domain, noting the interconnectedness of their defence sectors.