Brussels, 06/12/2007 (Agence Europe) - The European Commission and the Gulf Cooperation Council (GCC) countries have reactivated their talks for a free trade agreement that has been held up for several years despite the fact that the essential part of the agreement has already been settled. A negotiation session took place in Brussels from 26-29 November in Brussels but has not resulted in winding up the talks. This is due to the fact that opinions differ on a number of technical subjects such as respect of competition rules, intellectual property, services, public procurement and commercial management mechanisms (quantitative restrictions, etc). Discussions will follow in January. In the meantime, European Trade Commissioner Peter Mandelson spoke in Doha about the content of these talks with his various discussion partners on the sidelines of the GCC summit which concluded its work on 4 December, in Qatar.
In Brussels, there is still hope that a swift conclusion will be reached if the political resolve is there. Reports in the Gulf press that talks have “failed” have, however, caused some astonishment. The reports arise in particular from declarations to the press made by the finance, economy and trade ministers of the Emirate of Qatar after talks with Commissioner Mandelson. “We discussed the free trade agreement with Mr Mandelson (…) but some points need to be reformulated in order to comply with the demands of both parties”, one of the two ministers said. It appears from these declarations that the GCC is “displeased with the high customs tariffs imposed by the EU on its refined oil products and aluminium”. This is backed by GCC statistics indicating that the six member countries make up the fifth largest market for EU exports while their trade deficit with the EU is very high, amounting to $17 billion.
The GCC summit ended with the restated announcement that a regional common market would be created in 2008 - one in which the freedom of movement of capital, goods and persons would be assured. There was reaffirmation of the wish to launch a single currency from 2010 despite the scepticism and the hesitation expressed by some of the six member countries. The continued fall in the dollar gives cause for concern to oil producing countries that have finally had to discard anchoring their currencies to the American dollar. The main thing causing them concern during the “summit” was the matter of determining what attitude should be adopted towards their Iranian neighbour whose president made a surprise visit to the six heads of state with the benevolent complicity of the host state, Qatar. Speaking to the summit, Mahmud Ahmadinejad suggested a political pact in order to ensure security in the “Persian Gulf” region (at the risk of offending his interlocutors by using this controversial term).
The solution suggested by the Iranian leader hints at the prospect of “neutralisation” of the Gulf countries should there be an American attack against his country. The idea is not rejected by the six oil monarchies that already feel “scalded” by the consequences of US intervention in Iraq. (F.B.)