Food exports from EU doubled in the last five years

Abu Dhabi

Food exports from the European Union to the UAE doubled in the last five years with the value of exports going up from 1.5 billion euros to 3 billion euros currently, the EU ambassador to the UAE told Gulf News.

“Exports are growing to the UAE as well as to the entire Gulf region. We are planning to expand it further as there is a huge potential,” said Patrizio Fondi, speaking at Sial Middle East, a trade exhibition related to food and beverage industry that got underway in Abu Dhabi on Tuesday.

EU exports included chocolates, dairy products and meat, among other things. Imports from the UAE include gems, tea and coffee.

When asked whether the introduction of five per cent value added tax from next year will have any impact on EU exports, he said it would not make a difference.

“European companies are used to VAT and they are prepared and know how to deal with it. The tax is just 5 per cent and is acceptable. Impact will be meaningful but not dramatic.”

UAE will introduce 5 per cent value added tax from January 1 on many items including food and beverages, jewellery, petrol, electronic items, among other things. UAE along with Saudi Arabia are the first two countries in the GCC region to start implementing the new tax.

On boosting bilateral trade, he said European Union started a new dialogue with GCC countries on trade and investment this year to have a committee to discuss about trade including on agri-products and investments.

“Already it was quite fruitful and useful to have this kind of meetings and hope to increase contacts to avoid misunderstandings and have a regular discussion on various issues including VAT. We are also planning EU gulf business forum meeting in April, which would be both government to government and business to business.”

The bilateral trade between EU and the UAE is 50 billion euros for 2016 and is expected to grow, he added.

Meanwhile, retailer group Lulu launched their newly rebranded private label products during the Sial Middle East.

“As we are on a fast expansion mode, we expect to double our product range in the next 2 years. We also are focusing on sourcing more locally produced products to support the UAE food processing industry and today we launched cooking oil produced in Abu Dhabi,” said MA Yousuf Ali, chairman of the group in a statement.