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Europe Daily Bulletin No. 7951
Contents Publication in full By article 18 / 60
GENERAL NEWS / (eu) eu/gulf

Differences over political issues could have led to deadlock in negotiations over free-trade area

Manama, 24/04/2001 (Agence Europe) - The 11th session of the Cooperation Council between the European Union and the Gulf States, chaired by the Foreign Minister of Bahrain Sheik Mohamed ben Moubarak Al-Khalifa and Swedish Deputy Prime Minister Lena Hjelm-Wallen who was accompanied by European Commissioner Pascal Lamy, was held in Manama "in a cordial and friendly atmosphere", according to the wording agreed that opens the final communiqué. The meeting does not however seem to have gone without upsets, as the in-depth changes the text underwent in relation to the initial draft may lead one to believe, especially on political issues (see EUROPE of 21 April, p.9), and the private declarations of the spokesman of the 6 Arab monarchies (Saudi Arabia, Bahrain, Kuwait, United Arab Emirates, Qatar and Oman), threatening to break off negotiations on a free-trade agreement with the Union.

"Given the slow pace (of negotiations), the GCC countries fear being led to reconsider their commitment to a project of a "free-trade area", declared Sheik Mohamed quoted by the Bahrain press agency GNA. He urges the EU "to take into consideration the strategic interests" that link it to the oil monarchies of the Gulf, whose grounds cover 45% of world oil reserves, and to "contribute to the lifting of obstacles" that impede the conclusion of an agreement, including European export taxes on aluminium and petrochemical products of the region. The GCC, moreover, secured that some words be included in the joint communiqué stressing that these negotiations "have been going on for over ten years without much progress" an that the trade balance of the partners "remains substantially to the advantage of the EU". The passage concerning cooperation in the field of energy was also substantially altered to back the Saudi proposal of establishing a forum in Riyad in view of promoting dialogue between oil producer and consumer countries, the EU, however, reserving the right to examine all the details.

Regarding the political chapter, the European position again moved somewhat. Thus, from the detailed chapter that was initially envisaged on human rights in the Gulf region, there only remains a vague promise of promoting its respect. The lengthy passage on Afghanistan was also reduced to a few words of encouragement for international efforts at pacification: not a word, however, on human suffering, the impact of the conflict on the region's stability and prosperity, the hypothetical support of the partners for the peace initiative announced by the former King of Afghanistan Zahir Shah or the potential influence of the GCC over efforts being deployed by the United Nations. Likewise for the passage relating to Iran that no longer makes any reference to human rights or the impact of the strengthening of relations with this country on regional stability, but which was enriched by a promise by the GCC to seek to resolve the territorial conflict with the United Arab Emirates through "direct" negotiations or through the International Court of Justice.

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