GCC-Japan trade deal takes shape
18/01/2007 Gulf News (UAE)
GCC-Japan trade deal takes shape
By Ahmad A. Elewa, Staff Report
Abu Dhabi: Japan is expecting to finalise a Free Trade Agreement (FTA) with the Gulf Cooperation Council (GCC) by the end of 2007, according to a senior diplomat.
"All the critical and substantial issues related to the agreement have been already resolved, and accordingly the substance of the agreement should be final by the end of 2007," Takuma Hatano, Japan’s ambassador to the UAE, told reporters yesterday.
The value of trade between the UAE and Japan is expected to reach $41 billion in 2006 as Japanese exports are expected to climb to $5 billion and then to $6 billion. At the same time imports from the UAE are expected to reach $35 billion, according to Hatano.
Lifeline
"The bulk of the UAE’s exports to Japan comprise crude oil, as the country provided an energy ’lifeline’ to Japan in which 25 per cent of Japan’s oil imports come from the UAE, and the UAE exports more than 65 per cent of its total crude production to Japan, a fact that has helped Japan withstand oil-price volatility," he added.
With this level of trade, and more than 200 Jap-anese companies operating here, the country ranks as the biggest trading partner for the UAE, and with the projected free trade agreement Japan seeks to participate in the UAE’s efforts to expand the economy far beyond the energy sector.
"We are interested in supporting the UAE in many fields and transfer our know-how and technology, as it ranks as one of our most important partners in the Middle East and the Arab world, and that includes industry, environment and education," Hatano said.
Thus the Japanese business community is looking forward to the opportunities offered by the GCC common market after signing the FTA.
