GCC-EU Free Trade Agreement Nearing Completion

by Ulrika Lomas, for LawAndTax-News.com, Brussels

22 March 2006

According to officials on both sides of the negotiations, a Free Trade Agreement between the European Union and Gulf Cooperation Council countries (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates) is now even closer to becoming a reality.

Speaking to the Arab News at the weekend, EU Trade Commissioner, Peter Mandelson announced that:

"I see no real obstacles to the conclusion of the pact."

He went on to add:

"The main objectives of the free trade agreement are a progressive and reciprocal liberalization of trade in goods and services aiming at assuring a comparable level of market access opportunities, consistent with the relevant provisions of the WTO and taking into account the level of development of the GCC countries and fostering economic integration between the parties, with a view to diversifying and increasing mutual trade."

Meanwhile, assistant undersecretary in the UAE's Ministry of Economy, Abdullah Ahmad Al Saleh confirmed that agreement had been reached on several issues during recent talks, with the remaining matters to be thrashed out in negotiations in the near future.

"In principle, both sides have agreed that GCC exports of aluminium and petrochemicals will have zero tariffs from day one of the enforcement of the agreement, but this will be finalised in Riyadh at next month's talks," he told the news service, continuing:

"We are hopeful that would be the last round of talks."

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