Europe seeks deeper trade ties with UAE, Philippines, says Ursula von der Leyen

Davos: The European Union is advancing free trade negotiations with the UAE, Philippines, Malaysia, and Thailand, the European Commission President Ursula von der Leyen told audiences at the World Economic Forum in Davos.

von der Leyen said Europe is actively pursuing free trade agreements with fast-growing economies across Asia, the Middle East and the Indo-Pacific, including the UAE and the Philippines.

She said the EU is choosing “fair trade over tariffs” and partnerships over isolation as it looks to diversify supply chains. She said Europe is also on the cusp of a ‘mother of all deals’ with India.

Von der Leyen named the UAE among several countries where trade talks are progressing, alongside the Philippines, Thailand and Malaysia.

The EU has been expanding its network of trade agreements after recently concluding deals with Mercosur countries in South America, as well as updating or advancing agreements with Mexico, Indonesia and Switzerland.

“This new Europe is already emerging. On Saturday, I was in Asunción, Paraguay, to sign the EU-Mercosur trade agreement. It was a breakthrough after 25 years of negotiations. And with it, the EU and Latin America have created the world's largest free trade zone,” she said.

“A market worth over 20 per cent of global GDP. 31 countries with over 700 million consumers. Aligned with the Paris Agreement. This agreement sends a powerful message to the world. That we are choosing fair trade over tariffs,” she added.

“Europe wants to do business with the growth centres of today and the economic powerhouses of this century,” von der Leyen said.

The EU and the UAE agreed to launch negotiations on an ambitious and commercially beneficial free trade agreement (FTA) in April 2025.  

The negotiations - which were formally launched on 28 May 2025 - will focus on reducing tariffs on goods, and facilitating services, digital trade and investment flows. 

The Philippines was also highlighted as a key partner as the EU strengthens its presence in the Indo-Pacific region.

Trade talks with the Philippines are seen as part of Europe’s effort to expand access to Asian markets, boost investment flows and support more resilient supply chains, particularly in manufacturing, digital services and clean energy.

The EU is one of the UAE’s largest trading partners, with bilateral trade spanning energy, aviation, logistics, manufacturing, luxury goods, technology and renewable energy.

Von der Leyen said trade agreements are central to Europe’s long-term strategy to strengthen economic independence, attract investment and support global growth.

“Europe will always choose the world,” she said, adding that global partners are increasingly ready to choose Europe in return.