The GCC and South Korea have signed a major trade deal as they look to boost economic ties.
Jasem Mohamed Albudaiwi, Secretary-General of the Gulf Cooperation Council (GCC), and Ahn Dukgeung, Minister of Trade of the Republic of South Korea signed a Free Trade Agreement (FTA).
Albudaiwi said the agreement is a historic step towards achieving Gulf economic integration and enhancing economic and trade relations between the two sides.
GCC-South Korea free trade
He noted that the GCC implemented FTAs to enhance economic relations with other countries and international blocs and to accomplish joint trade and investment goals.
Under the agreement, South Korea will remove tariffs on 89.9 percent of all items, including liquefied natural gas, liquefied petroleum gas and other petroleum products, according to South Korea’s Yonhap news agency.
The Gulf nations will lift tariffs on 76.4 per cent of all products traded, along with tariffs of 4.1 per cent of goods traded.
Of major items, South Korea expects growth in exports of vehicles, auto parts, machinery and weaponry to the Arab nations through the agreement. It also said that cheaper energy imports from the Arab nations will enhance competitiveness of South Korean exporters.
The GCC is the fifth-largest trading partner for South Korea, with trade volume between the two sides coming to $102.6bn in 2022, according to its Ministry of Trade, Industry and Energy.
Jasem Mohamed Albudaiwi highlighted that this agreement is expected to contribute to increasing bilateral trade volume and enhancing trade in goods and services between the two parties, as well as promoting economic diversification plans in the Council member countries and South Korea.
The secretary-general emphasised that the agreement included 18 chapters, covering trade in goods, services, government procurement, digital trade, cooperation in the field of small and medium-sized enterprises, customs procedures, intellectual property, and other chapters and topics of mutual interest.
This is the second agreement concluded by the GCC with its trading partners in the world during 2023, following the announcement of the signing of a similar agreement with Pakistan in September of last year.
Albudaiwi highlighted that the signing of free trade agreements with Pakistan and South Korea within three months is a testament to the GCC countries’ economic standing, which has made the GCC countries a destination for countries from around the world to engage in various trade agreements and partnerships, especially in the economy.
He expressed his appreciation to the chief negotiators from both sides, as well as to the negotiating team of the GCC and the technical teams of the GCC countries who worked throughout the negotiating rounds to reach the agreement.
He said: “We look forward to the continuation of these excellent efforts to achieve further achievements in the joint Gulf work”.
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