Mercosur, GCC sign free trade zone frame agreement
Xinhua
11 May 2005
Mercosur, GCC sign free trade zone frame agreement
BRASILIA, May 10 (Xinhuanet) — The Common Market of the South (Mercosur) and the Gulf Cooperation Council (GCC) signed here Tuesday an agreement, paving the way for negotiations on the establishment of a Free Trade Zone linking the two groups.
The Mercosur groups Brazil, Argentina, Paraguay and Uruguay and the GCC comprises Saudi Arabia, Bahrain, Qatar, the United Arab Emirates, Kuwait and Oman.
Speaking at the signing ceremony, GCC Secretary General Abdulrahman al-Attiya said the signing of the agreement laid a solid foundation for the conclusion of a Free Trade Agreement in the future.
It showed both sides have decided to strengthen economic and trade ties, al-Attiya said, adding that the summit, proposed and organized by Brazilian President Luis Inacio Lula da Silva, provides a suitable opportunity to sign the agreement.
Meanwhile, al-Attiya expressed his expectations that a Mercosur delegation will visit Saudi capital of Riyadh, the GCC headquarters, this year to hold the first session of the joint committee.
The first summit of the South American-Arab countries opened in Brasilia on Tuesday with the attendance of leaders and ministers from 12 South American countries and 22 Arab states.
The signing of the agreement is regarded as the first concrete fruit of the summit.
Trade volume between Brazil and Arab countries amounted to 8.2 billion US dollars last year, 50 percent higher over 2003.
According to Mario Vilalva, director of the Trade Promotion Department of the Brazilian Foreign Ministry, Brazil intends to increase the trade volume to 15 billion dollars in two years.
