Hopes rise for EU–Gulf free trade agreement

23 April 2008

The world's first free trade agreement between customs unions could be finalized this year between the EU and the Gulf Cooperation Council (GCC), says a paper published today by Chatham House.

Commentary from the Gulf suggests that the EU practice of including clauses on human rights and environmental regulation has hindered progress on any agreement up to now. But efforts by the European Commission may see the successful conclusion of negotiations in 2008.

A free trade agreement is an element in the EU's Global Europe trade policy strategy and is explicitly linked to energy security concerns.

The EU is the GCC's main supplier of goods and services, and since the completion of the GCC Customs Union tariffs are low and the economic effects of a free trade agreement are likely to be small, on goods at least.

However, economic barriers still exist on both sides to the final signing of an agreement: resistance by GCC states to services and investment liberalization; and resistance in the EU over access for GCC refinery products and chemicals.

Click here to read Prospects for an EU-Gulf Cooperation Council Free Trade Area: The World's First Region-to-Region FTA?

For more information please contact:

Sean Armstrong
Press Officer
Chatham House
Direct: +44 (0) 20 7957 5739
Mobile: +44 (0) 78 4985 3757
Email: Sean Armstrong

ENDS

Surname
Membership No.
	Remember me