GCC free trade pact with EFTA to spur investment, says UAE

A trade pact signed by Gulf oil producers with four European countries this week will spur investments between the two sides and allow their companies to participate directly in project tenders, a UAE official said yesterday.

The free trade agreement (FTA) with the European Free Trade Association (EFTA) is the first to be finalised by the six-nation Gulf Co-operation Council (GCC) with a group of European countries and it followed lengthy negotiations that started in early 2006, said Juma Mohammed Ahmed Al Kait, Executive Director for Foreign Trade Affairs at the UAE Ministry of Foreign Trade.

In a statement sent to Emirates Business, Al Kait said the agreement covers trade, exchange of services, intellectual property protection, governmental purchases, methodology for arbitrating conflicts and other sectors. "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," he said.

"With regards 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."

GCC Secretary-General Abdul Rahman Al Attiyah and Oman's delegate Sheikh Ghazi bin Said Al Bahar Al Rawas signed the free trade agreement with EFTA in Hammer, Norway, on June 22.

The EFTA comprises Switzerland, Norway, Iceland and Liechtenstein. The agreement was signed on the sidelines of the Foreign Ministerial Conference of the EFTA countries held on the same day.

"This landmark 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 until April 2008," said Al Kait, who headed the trade services negotiations team for the GCC members.

Ministry figures showed the UAE is the sixth major partner of the EFTA in terms of bilateral trade, which reached $8.7 billion (Dh32bn) in 2008.

The FTA is expected to further increase trade and investment exchange between the two sides, as strong Gulf economic growth will enhance investment opportunities for companies in the two regions, said Al Kait.

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