Brussels, 15/10/2001 (Agence Europe) - The finance ministers of the GCC (Gulf Co-operation Council: Saudi Arabia, Bahrain, Arab Emirates, Kuwait, Oman and Qatar) propose bringing forward implementation of their customs union to 2003. Meeting in Rhyadh over the weekend, they also decided to create a single currency in 2010.
Planned for end-2000, the Customs Union was postponed to 2005 by the Heads of State in December 1999. Whereas they were close to their goal, the GCC General Secretariat had been unable to secure a final compromise between those in favour of a broad opening (with, leading, Dubai, where customs duties are 4% on average) and those wanting to keep a high level of protection (Saudi Arabia, where duties are close to 20%). The decision of the finance ministers, if confirmed at the summit, should allow for an active resumption of negotiations with the EU, which ran into difficulties due to hesitations by each of the six countries. Negotiations are underway to set a new negotiating session by the end of the year.
The Secretary General of the GCC, Ajlan al-Kowari says he is optimistic on the whole. "The stance of the GCC in negotiations with the other blocks, notably the EU, will strengthen if member states manage their economic integration", he said, stressing that the decision was to unify, by 2003, external tariffs at 5%, which would enable them to "comply with international agreements, including those of the World Trade Organisation (WTO)", he remarked.
In addition, the Trade Minister of Saudi Arabia, Osama Faqih, said lately that his country's accession to the WTO was "not imminent", as "despite the efforts we have made, a series of measures still needs taking", to meet the conditions for membership. For example, he said, Saudi Arabia "is not ready to open the telecommunications, audiovisual or other sectors as they are not ready for international competition".