Merkel: 'now is the time' for FTA

The European Union and the Gulf Cooperation Council (GCC) need to complete negotiations on a long-awaited pact that would establish a free trade zone, German Chancellor Angela Merkel said on Monday.

"I think that now is the time to come to an agreement," Merkel told an economic conference in Abu Dhabi. "That would be a significant signal."

A German official on a Middle East tour with Merkel said, on condition of anonymity, that there "is a clear political desire on both sides to get a swift resolution to the disputed points."

Gerhard Schröder - former German chancellor, and Merkel's arch-rival - was in talks last month with UAE Economy Minister Sheikha Lubna Al Qassimi on a possible GCC-EU free trade agreement.

The GCC first signed an economic cooperation agreement with Europe in 1988, which laid the framework for a bilateral free trade agreement. Proper negotiations began in 1990.

The EU is the GCC's top trade partner, while the Gulf group ranks number six for the 27-nation EU.

Merkel has vowed to reactivate the peace process in the Middle East during Germany's rotating presidency of the European Union in the first half of 2007. The country will also lead the G8 this year. Another issue Merkel wants to discuss with Middle East leaders is Iran's nuclear programme.

Earlier on her 4-day Middle East tour, Merkel met the general-secretary of the GCC, Abdul Rahman, to discuss next steps in the trade talks between the EU and Gulf states.

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