Gulf Arab states exclude US from collective trade agreements
Gulf Arab states exclude US from collective trade agreements
Sat Jun 4, 2005
KUWAIT CITY (AFP) - Gulf Cooperation Council (GCC) states have agreed to exclude the United States from collective trade agreements, allowing members to strike bilateral free trade deals with Washington, the Kuwaiti foreign minister said.
"The GCC states have excluded the United States from the collective (trade) agreements," Sheikh Mohammed al-Sabah told reporters after attending a seminar on future talks with Washington for a Free Trade Agreement (FTA).
"We in the GCC will hold collective (trade) agreements with all countries except the United States," he added.
The GCC groups Bahrain, Kuwait, Oman, Qatar, the United Arab Emirates (UAE) and Saudi Arabia.
The United States has signed an FTA with Bahrain, is negotiating for similar agreements with UAE and Oman and plans to begin talks with Qatar and Kuwait in the near future.
Last week, GCC Secretary General Abdurrahman al-Attiya told AFP that "the issue of free trade (agreements) with the United States ... is no longer a bone of contention between the GCC states."
He added that the issue was resolved "more than two weeks ago" during a meeting of the GCC finance and economy ministers held in Bahrain in the first week of May.
Saudi Arabia initially strongly opposed bilateral deals, arguing that bilateral free trade deals derail GCC economic integration plans. But it appears to have softened its position following a visit by Crown Prince Abdullah bin Abdul Aziz to the United States in April.
Kuwaiti daily Al-Rai Al-Aam, quoting informed diplomatic sources, reported Saturday that Riyadh had insisted on restoring customs barriers once the FTAs with Washington were applied.
GCC states launched their unified customs union on January 1, 2003, and the oil-rich region was due to become a single customs zone by the end of 2005.
The GCC states have also planned to establish a monetary union by the end of this year, a common market by 2007 and a single currency by the beginning of 2007.
The bloc’s annual summit, held in Manama last December, ended without making any reference to those plans, apparently over a dispute between Saudi Arabia and Bahrain over the latter’s FTA with Washington.
The summit also failed to state an intention on the part of member states to clear obstacles impeding a smooth implementation of a Gulf customs union launched in January 2003.
