The European Union and the United Arab Emirates have agreed to start negotiations on a free trade agreement

The European Union and the United Arab Emirates have agreed to launch negotiations on a free trade agreement (FTA), the European Commission said in a communique Thursday.

The communique said European Commission President Ursula von der Leyen held telephone talks Thursday with UAE President Sheikh Mohammed. During the call, the two sides agreed to start negotiations on a free trade agreement.

According to the communique, the negotiations will cover goods, services, investment and other areas, and work to strengthen cooperation in strategic areas such as renewable energy, green hydrogen energy and key raw materials. The European Commission's Commissioner for trade and economic security, Marosh Sefjovic, will visit the UAE in the near future to push forward the negotiations.

Speaking in Brussels on Monday, von der Leyen said the EU was looking to do more trade in other parts of the world outside the United States as the Trump administration's tariff policies hit international trade.