June 9, 2010Politicial push needed for free trade deal, European official says
A long-awaited free trade agreement between the GCC and the European Union (EU) needs a “political push” to get it off the ground, an EU official said yesterday.
Dominic Porter, the EU’s deputy head of unit for relations with the Gulf countries, said he hoped that the annual meeting of the EU-GCC foreign ministers, scheduled for next Monday in Luxembourg, would give talks the momentum they needed.
“We know exactly what the final outstanding problems are, and we believe that these are genuinely technical, commercial problems,” said Mr Porter. “However, we recognise that, to be solved, they will need a push at the political level.”
Although Mr Porter did not expect the agreement to be discussed extensively during the gathering of ministers, which will focus on the financial crisis and efforts to bring peace to the Middle East, he hoped that it would result in a “commitment that negotiators on both sides will be authorised to talk properly about the issues which have to be resolved”.
If signed, the treaty would be the biggest free trade agreement between two political and economic blocs. The EU has 27 members and the GCC six.
Gonzalo de Benito, Spain’s ambassador to the UAE, said last month that he expected the agreement to be signed during the Luxembourg meeting, an optimism that officials in Brussels do not share.
The blocs signed a co-operation agreement in 1988, in which both sides committed to starting negotiations on a free trade agreement.
Negotiations began in 1990, but no agreement has been reached. European officials say that before 2003, when the GCC Customs Union was launched, negotiations were halted to allow for the union’s creation.
But talks faltered when the EU insisted on the inclusion of a “suspension” clause, which would put a hold on the agreement should significant human rights breaches be reported in any of the GCC nations.
EU officials say the clause is a standard part of any trade agreement, which stipulates that parties abide by basic human rights stipulated in international charters.
But, in the case of blocs, observers note, making such commitments could hurt the interests of the rest of the region’s members if human rights breaches were reported in one of its countries.
In late 2008, the GCC suspended the negotiations again, over duty on exports. At least one member of the GCC insisted on maintaining a duty on its exports, which made its exported products more expensive than those designated for local consumption.
But talks faltered when the EU insisted on the inclusion of a “suspension” clause, which would put a hold on the agreement should significant human rights breaches be reported in any of the GCC nations.
EU officials say the clause is a standard part of any trade agreement, which stipulates that parties abide by basic human rights stipulated in international charters.
But, in the case of blocs, observers note, making such commitments could hurt the interests of the rest of the region’s members if human rights breaches were reported in one of its countries.
In late 2008, the GCC suspended the negotiations again, over duty on exports. At least one member of the GCC insisted on maintaining a duty on its exports, which made its exported products more expensive than those designated for local consumption.
“It’s about preserving the right to impose tariffs on products that are exported,” said Mr Porter. “It is a right of WTO [World Trade Organisation] members, but it’s against the principles of free trade agreements.”
Mr Porter said negotiations had continued despite the 2008 suspension, which was “encouraging”.
Sheikh Abdullah bin Zayed, the Foreign Minister, said in April that the UAE would push for the agreement during the UAE’s presidency of the Gulf bloc next year.
Mr Porter said negotiations had continued despite the 2008 suspension, which was “encouraging”.
Sheikh Abdullah bin Zayed, the Foreign Minister, said in April that the UAE would push for the agreement during the UAE’s presidency of the Gulf bloc next year.
nationalnews.com
