EU-GCC technical negotiations bring final FTA agreement closer
19 Jan '07
3 min read
What an EU-GCC FTAcan achieve: Like other EU FTAs under the Global Europe framework, an agreement with the GCC countries aims to build on WTO agreements and deepen progressive and reciprocal liberalisation of trade in goods and services.
It aims to foster economic integration between the parties and develop rules on investment, intellectual property rights rules of origin and public procurement. The agreement would also cover political issues such as human rights, illegal immigration and fight against terrorism.
EU-GCC Trade: The GCC is currently the EU's sixth largest export market and the EU is GCC's first trading partner. In 2004 the EU exports to the GCC were around €40 billion whereas the EU imports from the GCC amounted to around €25 billion. The EU exports to the GCC are diversified with focus on machinery and transport materials (56%), in particular power generation plants, railway locomotives and aircraft.
EU imports from the GCC consist mostly of fuels and derivatives (70% of total EU imports from the GCC countries). GCC countries currently benefit from preferential access to the EU market under the EU's Generalised System of Preferences.
Between 2001 to 2003, EU investments decreased in the Gulf (the GCC + Iraq and Yemen) from € 1.8 billion in 2001 to € 0.6 billion in 2003. EU capital has increased from 0.4% of total EU outward stock in 2001 to 0.9% in 2003. The Gulf investments in the EU increased from € 0.1 billion in 2001 to € 0.8 billion in 2003.
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