'Endless conditions' hinder Gulf-EU trade deal

ELUSIVE DEAL: Talks between the GCC and EU began in 1990.

A long-planned free trade agreement (FTA) between Gulf Arab states and the EU could be delayed for months, Qatar's deputy prime minister said on Sunday, blaming "endless" conditions by the European bloc.

“For the time being, the Europeans get the lion’s share out of any deal they break in the GCC, while we incur the losses and burdens, especially in the petrochemicals sector,” said Abdullah Al-Attiyah, adding that "unjustifiable" conditions were sometimes set which were impossible to meet.

"Every time we negotiate with them [EU], they add new conditions and this never ends. So we may not be able to sign the agreement for some months," Al-Attiyah told a conference in the UAE capital Abu Dhabi.

"Companies from the EU win very big contracts in the Gulf Cooperation Council (GCC), in fact very profitable contracts and yet we cannot export some of our products to their markets."

Saudi minister of commerce and industry Hashim Bin Abdullah Yamani added: “The problem is that the Europeans sometimes seek to include in the agreement issues that go beyond the framework of a technical economic agreement.”

Talks between the GCC and the EU began in 1990 but were slowed by the GCC agreeing only in 1999 to move towards forming a customs union and a new EU negotiating strategy adopted in 2001 to include the services sector in the talks.

The European Commission said in January 2006 it expected to complete the trade agreement "in the near future".

Oman's minister of commerce and industry Makboul bin Ali bin Sultan said what the EU described as a lack of coordination between GCC states was one of the reasons behind the delay.

"The EU points out lack of coordination and uniformity among GCC countries as well as differences between governments in some areas such as labour, copyright, property rights and so on," he said.

"[But] there are new conditions that the EU is coming up with and negotiations will have to continue. I cannot say for how long."

As well as seeking to boost trade and investment, the agreement would also cover political issues such as human rights, illegal immigration and the fight against terrorism. (Reuters)

Print | Email | Discuss this article |

USER COMMENTS (0 COMMENTS)

POST A COMMENT

CLICK HERE TO POST A COMMENT

Add your Comment All posts are sent to the administrator for review and are published only after approval. ArabianBusiness.com reserves the right to remove any comment at any time for any reason. Please keep your responses appropriate and on topic.
Name *
Remember me on this computer
Email *	(Your email address will not be published)
City
Country
Subject *
Comment *
Notify me of further comments
Security Code *
Please click post only once - your comment will not be published immediately.