From the Selen Sarisoy Consuelo Pachioli reading what are t

From the Selen Sarisoy & Consuelo Pachioli reading, what are the various trade trends between the GCC and the EU? What is the contribution of the UAE in this trade? Why hasn’t a trade agreement taken place yet between these two regions?

Solution

The EU and Gulf Cooperation Council launched negotiations for a Free Trade Agreement (FTA) in 1990. The FTA is foreseen to provide for a progressive and reciprocal liberalisation of trade in goods and services. The negotiations have faced several challenges and were effectively halted in 2008, when the GCC countries suspended all ongoing negotiations in which they were involved.

While periodic informal contacts have taken place since then to test whether a basis might be found to resume and conclude negotiations, these have not been successful.

The United Arab Emirates joined Saudi Arabia and the other GCC states in condemning Iraq’s invasion of Kuwait in 1990. It provided facilities for Western military forces and contributed troops for the liberation of Kuwait in early 1991. The emirates also became a member of both the United Nations and the Arab League in 1991.