EU and Gulf council set 1998 free trade deadline

24 February 1997 00:00  [Source: ICB]

After many years of difficult negotiations, the European Union and the Middle Eastern Gulf Co-operation Council are making progress in inter-regional trade talks.

European Union officials and representatives from the Gulf Co-operation Council have set a deadline of 1998 to finish negotiations on an inter-regional free trade agreement.

The talks, if successful, could give the EC a bi-lateral trade agreement with Gulf nations but critics say that creating another regional trade agreement only complicates trade matters for companies.

The joint council said both sides would try to make the deadline, but it follows an 18-month impasse caused by EU states wanting to deal with a single trade block rather than a plethora of tariff levels.

The talks have been based on assurances from the Gulf states that a common customs tariff will be in place by the time a free trade agreement is in place, effectively removing the obstacle placed by the EU states. The joint council said the Gulf Co-operation Council finalised a unified customs tariff as well as work 'on the wider aspects of a GCC customs union'.

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The joint council was criticised by Cefic and the Association of Petrochemcials Producers in Europe (APPE) as saying nothing new. 'Let us see it in place,' said Philippe Feron of APPE. 'I see nothing that is different from the 1992 EC mandate and also, there is no mention of double pricing which for us remains the most important issue.'

He added that an end to double pricing was imperative for the chemicals industry and that he wanted to see free trade and fair trade.

René Van Sloten, head of trade policy at Cefic, said: 'We are concerned at the proliferation of bi-lateral or regional agreements. We favour the multi-lateral route under the auspices of a strong and effective World Trade Organisation.'

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