EU faces growing pressure to review agreement with Israel as Gaza aid blockade tightens

Ireland has increased pressure on the EU to review the human rights clause of its association agreement with Israel following a famine alert in Gaza.

An initial request filed by Ireland and Spain in February 2024 was ignored by the EU Commission – the EU's executive arm. But a recent call for a review filed by the Netherlands and triggered by Israel's blockade of aid into Gaza has gained momentum. The Dutch initiative has been supported by Finland, Portugal, Sweden and France.

“The EU-Israel Association Agreement has clauses on human rights," Simon Harris, Ireland's Foreign Minister, wrote on X on Monday. "It says relations shall be based on respect for human rights. These words must have meaning. There must be a review of the agreement. The world is not doing nearly enough. The EU must show leadership.”

European countries are duty bound to do everything possible to bring an end to violence, assure humanitarian aid into Gaza and secure the immediate release of all Israeli hostages, Mr Harris said.

Food security experts on Monday said Gaza's population of more than two million people are likely to fall into famine if Israel does not end its blockade and continues bombing the enclave. About 52,829 Gazans have been killed by Israel's retaliatory war after around 1,200 people died in Hamas-led attacks in October 2023.

Starvation is already present in the enclave, with nearly half a million Palestinians enduring “catastrophic” levels of hunger, and one million others can barely get enough food, according to findings by the Integrated Food Security Phase Classification, an international authority on the severity of hunger crises. The group said “there is a high risk” of outright famine if circumstances don’t change.

In a letter to the EU's foreign affairs minister Kaja Kallas, Dutch Foreign Affairs Minister Caspar Veldkamp wrote on May 6 that Israel's blockade of Gaza broke international humanitarian law and thereby Article 2 of the EU-Israel association agreement.

There is no formal procedure for the EU Commission to review human rights clauses, which are enshrined in all of the bloc's association agreements.

In numbers: China in Dubai

The number of Chinese people living in Dubai: An estimated 200,000

Number of Chinese people in International City: Almost 50,000

Daily visitors to Dragon Mart in 2018/19: 120,000

Daily visitors to Dragon Mart in 2010: 20,000

Percentage increase in visitors in eight years: 500 per cent

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks.

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.

8. Pillar 2 implementation

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

Whiile you're here

Damien McElroy: Anti-science attitudes in America are proving lethal

Editorial: What makes the UAE such a good place to test vaccines?

Editorial: The fight against Covid-19 should be guided by science

Name: Peter Dicce

Title: Assistant dean of students and director of athletics

Favourite sport: soccer

Favourite team: Bayern Munich

Favourite player: Franz Beckenbauer

Favourite activity in Abu Dhabi: scuba diving in the Northern Emirates

MATCH INFO

What: Brazil v South Korea
When: Tonight, 5.30pm
Where: Mohamed bin Zayed Stadium, Abu Dhabi
Tickets: www.ticketmaster.ae

SERIE A FIXTURES

Saturday (All UAE kick-off times)

Lecce v SPAL (6pm)

Bologna v Genoa (9pm)

Atlanta v Roma (11.45pm)

Sunday

Udinese v Hellas Verona (3.30pm)

Juventus v Brescia (6pm)

Sampdoria v Fiorentina (6pm)

Sassuolo v Parma (6pm)

Cagliari v Napoli (9pm)

Lazio v Inter Milan (11.45pm)

Monday

AC Milan v Torino (11.45pm)

From Zero

Artist: Linkin Park

Label: Warner Records

Number of tracks: 11

Rating: 4/5

The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.

Read part four: an affection for classic cars lives on

Read part three: the age of the electric vehicle begins

Read part one: how cars came to the UAE

Safety 'top priority' for rival hyperloop company

The chief operating officer of Hyperloop Transportation Technologies, Andres de Leon, said his company's hyperloop technology is “ready” and safe.

He said the company prioritised safety throughout its development and, last year, Munich Re, one of the world's largest reinsurance companies, announced it was ready to insure their technology.

“Our levitation, propulsion, and vacuum technology have all been developed [...] over several decades and have been deployed and tested at full scale,” he said in a statement to The National.

“Only once the system has been certified and approved will it move people,” he said.

HyperloopTT has begun designing and engineering processes for its Abu Dhabi projects and hopes to break ground soon.

With no delivery date yet announced, Mr de Leon said timelines had to be considered carefully, as government approval, permits, and regulations could create necessary delays.

Test

Director: S Sashikanth

Cast: Nayanthara, Siddharth, Meera Jasmine, R Madhavan

Star rating: 2/5