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Impulse Papers
Translated from German with AI assistance
DIHK impulse for the EU Free Trade Agreement with the UAE
The EU has been negotiating a free trade agreement with the United Arab Emirates (UAE) since May 2025. The German Chamber of Commerce and Industry (DIHK) calls for an ambitious result that eliminates tariffs, facilitates investments, and opens real market opportunities in one of the world's most dynamic economic regions.
The current crisis in the Strait of Hormuz highlights how globally intertwined supply chains rely on stability and dependable partnerships in the Gulf region. A free trade agreement between the EU and the Emirates could provide planning security, reduce bureaucratic hurdles, and enhance the competitiveness of the German business location. The German Chamber of Commerce and Industry (DIHK) actively supports these ongoing negotiations and outlines specific ways in which the agreement could fully benefit companies.
Back in 1990, the EU began trade negotiations with the Gulf Cooperation Council (GCC), a regional group composed of Bahrain, Qatar, Kuwait, Oman, Saudi Arabia, and the United Arab Emirates. These talks have been on hold since 2008. The German Chamber of Commerce and Industry (DIHK) advocates for their vigorous resumption.
Trade relations with the UAE
The UAE is among the most significant trade and investment partners of the German economy in the Middle East: Bilateral trade volume reached a value of 13.3 billion euros in 2025, with German exports increasing by 66 percent between 2020 and 2025.
In 2025, Germany mainly exported motor vehicles (21 percent), machinery (17 percent), and electrical equipment (10 percent) to the Emirates; however, exports decreased by 24 percent in the first four months of 2026 due to the crisis.
This underscores the importance of stable trade relations. At the same time, the United Arab Emirates plays a growing strategic role for the European economy as a trade and logistics hub as well as a partner in energy and raw materials.
Since May 2025, the European Union has been negotiating bilaterally with the UAE regarding a free trade agreement. Many other countries have meanwhile concluded their own agreements with the Emirates, thereby placing their companies in a more favorable competitive position. The German Chamber of Commerce and Industry (DIHK) cautions that the EU risks falling further behind in trade policy and outlines key elements for the EU-UAE agreement:
DIHK’s proposals for an EU–UAE agreement
Complete elimination of all tariffs as well as non-tariff trade barriers such as import taxes and duties
Opening of service and public procurement markets at all governmental levels, including the level of individual Emirates
Regulatory cooperation based on the principle "tested once, accepted multiple times" as well as agreements on mutual recognition of standards and certifications (for example, CE marking, vehicle type approvals, pharmaceutical approvals)
Extension of the validity period of the Emirates Quality Mark to reduce unnecessary costs for European exporters
Abolition of dual certification requirements: For already Halal-certified products, no additional Halal certificates may be requested when exporting
Renewal of the double taxation agreement that expired in 2021 with specific regulations for service permanent establishments
Government-to-Government agreements between Germany and the United Arab Emirates to facilitate German companies' access to governmental projects
SME-friendly and practical rules of origin with a target customs preference utilization rate of at least 85 per cent
Approval of statements by registered exporters as an equivalent alternative to the EUR.1 movement certificate
Application of the "non-manipulation" principle instead of the "direct transport principle," allowing goods transported indirectly to benefit from customs advantages
Gradual reduction of the obligation for local majority holdings (51 percent) in sectors such as oil, gas, telecommunications, and infrastructure
Harmonisation of commercial licences across the borders of individual emirates to reduce administrative burdens for businesses
Strengthening the protection of intellectual property, including geographical indications
Prohibition of anti-competitive and trade-distorting practices, particularly industrial subsidies and unfair market practices by state-controlled companies (including in the aviation sector)
Facilitation of temporary entry for skilled workers and business travellers beyond the simplifications introduced in June 2025
Mutual recognition of professional qualifications including qualifications from dual training, not just university degrees
Fast and transparent visa issuance for employees from the European Union and from third countries
Free cross-border data flow without unnecessary localisation rules while adhering to European data protection standards.
Interoperability of digital systems and non-discriminatory market access for cloud computing, e-commerce, and financial technology.
Recognition of European standards for cybersecurity and digital certificates.
Enhanced regulatory cooperation on artificial intelligence, open standards, and digital sovereignty.
Effective limitation of export restrictions and export duties on energy carriers and raw materials
Deepening cooperation on critical raw materials, renewable energy, green hydrogen, and circular economy
Incorporation of internationally agreed climate, environmental, and labour standards of the International Labour Organization into the agreement
Accession of the United Arab Emirates to the Climate Club to avoid new trade barriers through the European border adjustment mechanism
Recognition of European testing, measurement, and certification systems (such as TÜV) in the Gulf states as equivalent alternatives to US standards
Shared commitment by both parties for preserving and reforming the World Trade Organisation (WTO).
United Arab Emirates forfeits its developing country status in the WTO framework.
GCC states join the interim multi-party arbitration process under the WTO Dispute Settlement Body (DSB).
Download
Publication
EU Trade Agreement with the United Arab Emirates
Summary
The DIHK supports negotiations on an ambitious trade agreement between the EU and the United Arab Emirates. In an impetus paper published in July 2026, it outlines the key aspects of the agreement.
Information
File format: PDF (accessible)
File size: 849 KB
Status of: September 2026
Page count: 8 pages
This English version is provided for convenience only. It has been translated with the assistance of AI. No guarantee is made as to the accuracy or completeness of the translation.
Released
08.09.2026
Contact
Klemens Kober
Director Trade Policy, EU Customs, Transatlantic Relations
