The EU-GCC Free Trade Agreement: A Comprehensive Overview
The European Union (EU) and the Gulf Cooperation Council (GCC) agreed to a free trade agreement (FTA) in 1988 to boost economic relations between the two regions. However, negotiations on a new and comprehensive agreement began in 2016, and the latest rounds of discussions have made significant progress towards the deal`s completion.
The GCC is an economic and political alliance of six Arab states: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates (UAE). The EU, on the other hand, comprises 27 member states with a combined population of over 450 million people.
The new FTA aims to further strengthen bilateral trade and investment between the EU and the GCC. It will provide significant benefits to both regions, including increased market access, stronger regulatory cooperation, and better protection for intellectual property rights.
The EU and GCC are major trading partners. In 2019, the trade volume between the two regions reached €155.8 billion, with the EU being the GCC`s largest trading partner. The new FTA has the potential to further increase trade flows between the two regions, boosting job opportunities, and economic growth.
The FTA negotiations have been challenging due to several factors, including the GCC`s diverse economic structures, political instability within the region, and differences in regulatory frameworks. However, the EU and GCC have made significant progress on most issues, including trade in goods, services, and investment.
One of the key aspects of the new FTA is the removal of tariffs and non-tariff barriers for goods and services. This means that businesses will have better market access to sell their products and services in the other region. It will also reduce the cost of trade by removing unnecessary and discriminatory barriers.
The FTA also includes provisions on public procurement, which will ensure fair competition for government contracts in both regions. This will provide European businesses with more opportunities to compete for public contracts in the GCC countries, increasing their chances to expand their business presence in the region.
The new FTA also includes provisions on sustainable development, labor rights, and environmental protection. This reflects the EU`s commitment to ensuring that trade agreements contribute to sustainable development. The agreement promotes responsible business conduct, ensuring that businesses respect human rights, and promote workers` rights and environmental protection.
In conclusion, the new EU-GCC FTA is a significant agreement that will boost trade between the two regions and provide businesses with access to new markets. It will enhance regulatory cooperation, reduce barriers to trade, and promote sustainable development. The FTA negotiations are ongoing, and both regions are committed to reaching an agreement soon.