Gulf Arab and European Union officials will start a new round of negotiations tomorrow on a long-stalled free trade pact, the Gulf Cooperation Council (GCC) secretariat said today. The two-day talks in Saudi Arabia follow an agreement by the oil-rich, six-nation GCC last year to expedite a customs union to 2003, paving the way for the trade deal which has been hampered by EU demands for GCC common tariffs and alleged protectionist EU policies.
The GCC states - Saudi Arabia, Kuwait, the United Arab Emirates, Qatar, Bahrain and Oman - own half the world's oil reserves. The EU is their main trading partner.
A key dispute between the two blocs is over a six per cent EU duty on primary aluminium Gulf exports. Two smelters in Bahrain and the UAE produce more than one million tonnes per year.
Gulf Arab officials have accused the EU of foot-dragging, saying the GCC had fulfilled all requirements to reach a deal streamlining annual trade worth about $46 billion.
They also warned that they might reconsider the pact if progress is not made soon.