Support for Free Trade Agreement with Saudi Arabia

Following the announcement by Ursula von der Leyen, President of the European Commission, regarding negotiations for a free trade agreement with the United Arab Emirates (UAE), Reinhold Lopatka, the head of the delegation for the Arabian Peninsula in the European Parliament, has expressed support for pursuing similar arrangements with Saudi Arabia. The Austrian People's Party (ÖVP) stated on Sunday that after initiating discussions with the UAE, efforts should also focus on establishing free trade with Saudi Arabia.

This week, Lopatka is leading a parliamentary delegation to Saudi Arabia and the UAE, accompanied by David McAllister, the Chairman of the Foreign Affairs Committee in the European Parliament. Lopatka highlighted that the EU remains the second most significant trading partner for the economically robust Gulf region, with a trade volume exceeding EUR170 billion annually, more than half of which is attributed to trade with the UAE and Saudi Arabia. He emphasized that reducing trade barriers would be mutually beneficial and contribute to the necessary economic recovery.

Initially, negotiations will concentrate on the UAE, focusing on the liberalization of trade concerning goods, services, and investments. EU Trade Commissioner Maros Sefcovic is expected to return to the Emirates soon to advance these discussions. Additionally, Austrian Economic Minister Wolfgang Hattmannsdorfer announced that his first economic delegation will visit the UAE.

The Federation of Austrian Industries (IV) underscored the importance of the UAE for Austria, noting that exports to the region surged by 24% last year. Christoph Neumayer, the General Secretary of IV, remarked that in light of erratic US trade policies, expanding trade partnerships has become more crucial than ever.