December 02, 2008

GCC inks free trade agreement with EFTA

It is reported that a free trade agreement between the GCC and the European Free Trade Association has been finalized after 5 rounds of talks in Geneva. European Free Trade Association includes the European states of Iceland, Liechtenstein, Norway and Switzerland.

Mr Abdulrahaman Al Atiyya secretary general of GCC said that the deal would improve economic co operation, increase goods trade and open up new investment opportunities between the two regions.

Merchandise trade in 2007 between the EFTA and GCC amounted to more than USD 5.4 billion. Exports from EFTA states, worth USD 4.4 billion, consisted mainly of clocks and watches, precious stones, pharmaceuticals and machinery.

The GCC is holding ongoing talks with the European Union over a long delayed wider FTA between the two blocs. Qatar’s deputy prime minister said in January negotiations could drag on for months, blaming endless conditions by the EU which were impossible to meet.

The GCC and EU signed a framework economic co operation agreement in 1988, but have been unable to agree a FTA because of issues including market access, government procurement rules and intellectual property rights.

The GCC is also in talks with Iran and Korea and finalized an agreement with Singapore earlier in 2008.