It's the thought that counts? GCC customs union set for Jan.1st
The energy-rich Gulf states agreed on Wednesday to resolve hurdles obstructing implementation of a long-delayed customs union, particularly revenue sharing, Kuwait’s finance minister said.
Leaders of the six-nation GCC have set January 1 to implement the customs union, first launched in 2003 and delayed on several occasions to resolve hurdles.
Anas Al Saleh said after a day-long meeting of finance ministers that there had been agreement on all points of the agenda, including on the mechanism for distributing customs revenues, which has been the biggest hurdle.
He told reporters the GCC secretariat has been asked to “conduct studies to make the mechanism clearer”.
Those studies and related issues will be reviewed by the ministers at a meeting in Kuwait City in September, added Al Saleh, whose country currently holds the GCC’s rotating presidency.
The Gulf states unified their customs tariff at five per cent over a decade ago, but their steps toward union have been very slow.
Ministers also discussed completing requirements for their common market and monetary union, both of which have been rescheduled a number of times. At the meeting’s opening, Al Saleh called on members to make concessions “in order to reach an agreed formula that guarantees the rights of all [Gulf] states”. The GCC countries “should unite their views and give concessions to eliminate things which hinder Gulf economic work,” Al Saleh told the meeting.
He urged the completion of requirements for the customs union, “particularly... distribution of customs revenues, protection of local agents and protectionism for some goods”.
For his part, GCC secretary-general Abdullatif Al Zayani urged members to facilitate free movement of national and foreign goods to allow the January deadline to be met.
When the customs union was launched at the start of 2003, full implementation was envisaged within three years. But questions over revenues, dumping and protectionism have caused repeated delays.
A 2010 deadline came and went when the energy-rich bloc failed to agree on the sharing of tariff revenues and experienced difficulties in meeting World Trade Organisation rules.
- Just BS? Why Israel's anti-BDS law can't really stop BDS internationally
- Malnourished economy: global hunger leading to $2 trillion loss in world GDP
- Going green: UAE looks to save Dh6.98b a year by 2030 with renewable energy
- Diversify and dump the slump in the GCC
- Supervising the stoners: Egyptian tobacco traders call for the legalization of cannabis