GCC looks east for win-win trade deals

DUBAI, Feb 2 (Gulf News): The Gulf Cooperation Council (GCC) is increasingly looking eastward to secure trade accords, which in itself reflects the difficulties in concluding free trade agreements with the likes of the European Union (EU).
Talks on Free Trade Agreement (FTA) between the EU and GCC commenced in 2003 when the latter moved to implement the requirements for a customs union, and thereby assume a unified external trade policy.
However, contentious issues rose on such issues as the EU's reservations with the GCC on political openness, human rights and environmental protection. On trade, there was the subsidy to Gulf-based aluminium and petrochemicals firms engaged in exports to EU economies. Conversely, the GCC was displeased with EU tariffs on aluminium and petrochemical products.
For its part, the US has shown little, if any, interest in reaching a collective FTA with the GCC. Currently, the US has separate FTAs with Bahrain and Oman.
Against this backdrop, it is not surprising to see the Gulf make efforts to clinch trade deals with some Asian countries, which are also showing a similar willingness. This is evidenced in the FTA with Singapore and a framework agreement with Malaysia. Trade talks are taking place intermittently with China, Japan, South Korea, India and Pakistan.
Notably, the GCC signed the first ever FTA with Singapore back in 2008 only two years after the start of the negotiations. However, the deal went into effect only in September 2013, with the delay attributed to the relatively slow ratification process in Saudi Arabia.
The deal is a comprehensive and covers trade in goods, services, and government procurement. To Singapore's credit, the agreement extends recognition of halal certification of Majlis Ugama Islam Singapura (MUIS).