Austria urges the European Union to expedite trade negotiations with the UAE

SadaNews - The Austrian Minister of Economy urged the European Union to accelerate free trade talks with the UAE after state-owned chemical companies in both countries recently completed a merger deal worth over $60 billion.

Speaking at a business gathering on the outskirts of Vienna on Wednesday, Minister of Economy and Energy Wolfgang Hatmannsdorfer stated that negotiations between the bloc and the UAE have not made tangible progress after a year of discussions and six rounds of negotiations. He added that Europe risks missing out on investment and export opportunities as the geopolitical and economic power of Gulf countries increases.

Hatmannsdorfer said, "There is no deal in sight," criticizing what he described as the EU’s tendency to burden trade talks with unrelated political discussions rather than focusing on market access and reducing tariffs.

Partnership in energy, infrastructure, and technology

These statements highlight the growing concern among European governments and businesses that the EU is losing its trading position as Gulf countries deepen their relationships with Asia and the United States. EU trade ministers are scheduled to discuss the ongoing negotiations during a meeting on Friday.

Austria views the UAE as a strategic partner in the fields of energy, infrastructure, and advanced technology, even as the Iran war increases broader security risks in the region. State-owned companies in both countries had earlier this year closed a $60 billion merger deal related to petrochemical activities.

Hatmannsdorfer stated, "We need to diversify our supply chains," referring to the rising geopolitical uncertainties and pressures on Europe’s competitiveness. He added that ensuring stable access to energy and raw materials has become a crucial element in future trade agreements.

The minister clarified that Austria aims to increase its exports to the UAE by up to one billion euros ($1.1 billion) by 2029, more than double current levels, focusing on artificial intelligence, railway technology, hydrogen, and industrial engineering.