Brussels, 30/05/2008 (Agence Europe) -The Joint Cooperation Council between the EU and the countries of the GCC (Gulf Co-Operation Council, which is made up of Saudi Arabia, Bahrain, the United Arab Emirates, Kuwait, Oman and Qatar) held its 18th session in Brussels on Monday 26 May. It ended with the adoption of a joint press release which officially stresses the fact that cooperation is unfolding under excellent conditions. The session was chaired by the Qatar Foreign Affairs Minister, Ahmad Bin Adallah, opposite his Slovenian colleague, Dimitrij Rupel, the president-in-exercise of the Council, and was attended by High Representative for the CFSP Javier Solana, and two members of the Commission, Peter Mandelson, (Trade) and Benita Ferrero-Waldner (External Relations). The two parties examined the implementation of the cooperation agreement of June 1988 covering joint actions in the field of energy, climate change, research and development, education and "economic dialogue". Ideas were raised concerning monetary cooperation, to draw benefit from the experience of the European single currency and knowledge of the European Central Bank (ECB). The intention which was announced, but not put into practice, is to make the euro a reserve currency, replacing the dollar. Meetings have been arranged, notably for the second half of 2008, for a fact-finding mission in the field of research, a mission of European environmental experts will be sent early in 2009, and Europe will take part in the Masdar project (United Arab Emirates) into solar power. The subjects of the situation on the oil markets and the repercussions on the global economy were not officially discussed. Discussions focused on the situation in the region and none of the sensitive issues (Palestine, Iraq, Iran, Lebanon, Yemen, etc) were omitted.
Cooperation under the 1988 agreement is to be extended by a free-trade agreement. Negotiations have been underway since 1990. Once again, the ministers promised that everything would be completed before the end of 2008; a meeting has been arranged for July to try to resolve the last outstanding points. Announcements to this effect are made from time to time, at each session of the joint Council for the last four years. There is in fact a delay in the conclusion of the agreement. Apparently there are now just five outstanding points of disagreement: one political (human rights) and four economic and commercial in nature (reciprocal market access, quantitative restrictions, exemptions, export taxes from the countries of the GCC and postal, maritime and financial services). They are mainly problems of wording, according to a diplomat from one of the Gulf countries. In reality, the deadlock is more likely to be related to a lack of political will at this moment in time. These countries have already signed free-trade agreements with several other countries or economic groups of countries, so why not with us, is a question put by the European side. According to certain sources, the delay in fact has nothing to do with technical obstacles, but the six oil monarchies are ill at ease with the cooperation format put forward by the EU, particularly on human rights (major protestations were made against a resolution of the European Parliament on 24 April and against the request to include a clause in the body of the agreement providing for the agreement to be suspended in case of serious infringements), on freedoms of religion (which they are calling for in Europe, but which are not permitted in their own countries), civil liberties, which in these countries (with the exception of Bahrain) are well below internationally recognized standards, and women's rights. The lack of political will is believed in large part to be due to the difficulty experienced by the GCC countries in organising their own economic zone, according to observers (customs union, prospects of monetary union, etc), which makes it harder to understand their reactions to the European offers. Other discouraging elements have cropped up, as the Parliament stated: "EU businesses are faced with serious barriers to trade in the GCC countries; the ceiling of 50% participation in local businesses in particular dissuades many EU businesses from investing here". European investments in the region are falling, whilst GCC investments in the EU are on the rise. The Parliament had called for a tightening of controls on competition and sovereign funds of these countries.
The union of the Gulf countries is gradually becoming reality, but developments are slowed by the major rivalry between the six partners made rich by their oil, worsened by their relationship with the United States (strategic and commercial), which has proved divisive. Unlike the EU, Washington has refused to negotiate with the GCC as a whole, but has done so separately with each of the monarchies, jeopardising a solidarity which all acknowledge runs deep. (F.B.)