The EU-UAE Free Trade Agreement: What You Need to Know
The European Union (EU) and the United Arab Emirates (UAE) concluded negotiations on a historic free trade agreement in November 2020. This agreement is expected to boost trade between the two regions, reduce barriers to market entry, and promote economic growth. In this article, we will take a closer look at the details of the EU-UAE Free Trade Agreement and the benefits it brings to businesses and consumers.
What is the EU-UAE Free Trade Agreement?
The EU-UAE Free Trade Agreement is a comprehensive agreement that will eliminate tariffs on 90 percent of all goods traded between the EU and UAE. This will help to reduce the cost of importing and exporting products, making it easier for businesses to access new markets and compete on a level playing field. The agreement also includes provisions on services and investment, as well as intellectual property and public procurement.
What are the benefits of the EU-UAE Free Trade Agreement?
For businesses:
– Lower costs: The elimination of tariffs on 90 percent of goods will reduce the cost of importing and exporting products between the EU and UAE, making it easier for businesses to trade across borders.
– Increased market access: The agreement will open up new markets for businesses in both regions, creating opportunities for growth and expansion.
– Fair competition: The agreement will ensure that businesses in both regions compete on a level playing field, without facing discriminatory measures.
For consumers:
– More choices: The agreement will increase the range of products available to consumers, providing more choices at lower prices.
– Improved quality: The competition from businesses in both regions will lead to improvements in product quality and standards.
– Greater affordability: The reduction in tariffs will lower the cost of imported goods, making them more affordable for consumers.
What are the next steps?
The EU-UAE Free Trade Agreement is currently awaiting signature and ratification by the parties. Once signed and ratified, it will enter into force and become legally binding. The agreement will be in place for an initial period of ten years, with the possibility of extension.
In conclusion, the EU-UAE Free Trade Agreement is a significant achievement for both regions. It will promote economic growth, create new opportunities for businesses and provide more choices and lower prices for consumers. The agreement represents a major milestone in the economic relationship between the EU and UAE, and marks a significant step forward in the ongoing efforts to strengthen further ties between the two regions.