• Home
• /
• Local business

GCC Nations and Four European States Sign Free Trade Agreement

DUBAI - Four European states and Gulf Cooperation Council, or GCC, nations have signed a free trade agreement to further increase the volume of bilateral trade and investment.

The agreement was signed on June 22 between the finance ministers of European Free Trade Association, or EFTA, and GCC Secretary-General Abdul Rahman Al Attiyah on behalf of the Gulf nations, a statement issued on Saturday said.

The EFTA comprises Switzerland, Norway, Iceland and Liechtenstein. The agreement was signed on the sidelines of the Ministerial Conference of the EFTA countries in the city of Hammer, Norway, a statement issued on Saturday said.

The agreement covers areas such as commercial trade, exchange of services, intellectual property protection, governmental purchases, and methodology for arbitrating conflicts. In addition, the agreement seeks economic partnership through investments and the reduction of customs duties on most goods exchanged by both sides, especially agricultural goods.

Commenting on the development, Juma Mohammed Ahmed Al Kait, Executive Director for Foreign Trade Affairs at the UAE Ministry of Foreign Trade said that this agreement, which aims to bring in trade liberalisation and promote investment opportunities and partnership between the two sides, was signed after a period of extensive negotiations which started in February 2006 and went on till April 2008.

With regard to the trade in services, the agreement will improve the access to markets and open up sectors that are of interest to both sides. The agreement will also provide an opportunity for companies from both regions to participate in government tenders within a framework of transparency in procedures and in accordance with specific regulations.

The UAE is the sixth major partner of the EFTA in terms of the volume of bilateral trade, which reached $8.7 billion in 2008. It is expected that this agreement will further increase the volume of bilateral trade and investment between the two sides, as the rapid economic growth rates of the Gulf countries will enhance investment opportunities for companies in the two regions.

abdulbasit@khaleejtimes.com