(Bloomberg) -- The European Union is considering working toward a trade deal with the United Arab Emirates as the 27-member bloc seeks to cooperate more with the Gulf states on issues including energy and security.
The European Commission, the EU’s executive arm, considers bilateral deals with individual countries in the area more feasible after efforts to clinch a region-to-region accord with the Gulf Cooperation Council — which includes the UAE, Bahrain, Saudi Arabia, Oman, Qatar and Kuwait — have stalled, according to people familiar with the plans.
Leaders from the EU and the GCC will meet in Brussels on Oct. 16 to step up cooperation on issues affecting regional security and stability and to discuss challenges to the global economy.
“It’s an important moment for the relationship between Europe and the Gulf countries,” the EU’s foreign policy chief, Josep Borrell, said in Dubai this week. “We have been talking quite a long time about the trade relationship between the EU and the Gulf and this can be considered region-to-region or it can be considered through bilateral agreements.”
Borrell added that due to the difficulties of reaching a broad agreement that includes all the GCC nations, the members may be interested in pursuing bilateral accords.
In spite of the renewed interest, a deal between the EU and the UAE would face challenges, namely finding an arrangement that wouldn’t alienate other countries in the Gulf region, according to a UAE official, who spoke on the condition of anonymity.
There have been various attempts to reach a trade agreement with the GCC since the talks started in 1990, but all the efforts failed to bear fruit. Against this backdrop, the commission has proposed to its member states to explore bilateral deals, primarily with the UAE, said the people.
The commission and member states, however, are concerned about upsetting other nations such as Saudi Arabia, which prefer to strike a regional deal, said the people.
The bloc sees bilateral trade deals as a stepping stone toward a regional agreement down the road if the conditions are met, the people said. And for those nations who would not seek the ambition of a trade deal, the EU is ready to explore strategic partnership agreements to improve relations on topics such as climate, security, digital or innovation.
The leaders at the summit will also discuss the clean transition and cooperation on energy, security, migration, among other topics, said the people. They’ll also likely broach human rights, the fight against money laundering, sanction circumvention and Russia’s invasion of Ukraine.
--With assistance from Samy Adghirni.
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