UAE seeks bilateral EU trade talks with GCC negotiations at impasse

Sources told Reuters that the United Arab Emirates is quietly urging the European Union to start talks on a trade pact separate from an Arab bloc as the Gulf state seeks closer political and economic ties with Europe.

Abu Dhabi is frustrated at long-stalled trade negotiations between the EU and the Gulf Cooperation Council (GCC), an Arab bloc that includes the UAE and Saudi Arabia.

According to Reuters, the UAE had yet to submit a formal request to the EU, and it was unclear whether the GCC was aware that Abu Dhabi had sought to initiate a bilateral process.

They said the UAE continued to officially support the GCC-EU process, although it was privately pushing for its own talks.

However, the sources said UAE officials regularly raised the idea of a bilateral trade process in meetings with counterparts from the EU and its 27 member states, including in recent weeks.

The sources, who asked for anonymity to discuss the matter as the details are not public, said Emirati officials had brought up the matter in almost every meeting across many levels.

After this story was published, a UAE Ministry of Economy spokesperson said in an emailed statement that the Gulf state was open to exploring opportunities with partners both through the GCC and on a bilateral basis.

The EU prefers a deal with the GCC, which includes Qatar, Kuwait, Oman, and Bahrain, but some EU states have voiced support for a UAE deal given the GCC's lack of progress.

They said that if any significant momentum fails by the summer, the EU could consider a bilateral process with the UAE.

The GCC, headquartered in Saudi Arabia's capital, Riyadh, is a longstanding alliance that seeks to encourage political and economic cooperation between the six Gulf states.

The GCC Secretariat did not respond to emailed requests for comment. A European Commission spokesperson said expert-level discussions with the GCC were continuing and that the EU had also held talks with the UAE to enhance trade and investment relations, without saying whether the sides had discussed a bilateral process.

The EU would require a new mandate from its member states to start bilateral talks with the UAE, a process the sources said could take several months. 

They said the UAE wants to refrain from engaging in simultaneous bilateral and bloc-to-bloc negotiations, meaning the EU negotiates with the UAE or the GCC.

Reuters