GCC defers decision on customs union
Sheikh Muhammad Al-Sabah, foreign minister of Kuwait, is seen arriving at Jeddah airport for the meeting of foreign ministers of Gulf Cooperation Council countries on Monday. (SPA)
Published: Sep 7, 2010 17:35 Updated: Sep 7, 2010 17:40
JEDDAH: The six GCC countries last night agreed to postpone a decision on establishing a single customs union for a few more years. The decision was taken at an exceptional meeting attended by GCC ministers of foreign affairs, finance and economy in Jeddah on Tuesday night. The ministers announced that they were not able to reach a final agreement on the issue.
Addressing a press conference after the meeting, Kuwaiti Finance Minister Mustapha Al-Shamali said the agreement to establish a customs union, signed by GCC members about seven years ago, was still intact and on the correct path despite the fact that some countries were late in applying its provisions.
The Kuwaiti minister did not name the countries but denied any hurdles impeding the execution of the agreement. "Definitely there are differences of opinion among us," he admitted.
Al-Shamali added that the six countries could not agree on the how customs revenues would be distributed nor the mechanism for its collection.
He, however, said the GCC countries might start applying an automatic customs clearance system this year to enable them to collect revenues, instead of the manual system currently being used.
The Kuwaiti minister, whose country is chairing the current GCC session, said some countries were not willing to implement all the requirements of the union.
"The financial, economic, commercial and industrial committees are studying these issues, which will be discussed at the right time," he added.
Al-Shamali claimed that the project had almost reached the stage that would enable the GCC to finally become a unified economic bloc.
He was confident that the implementation of a single customs union would boost the six countries' role in the World Trade Organization and enable them to have more of a say in world trade policies.
Al-Shamali said the meeting also discussed ongoing negotiations with neighboring countries and economic blocs and added that a study on the subject would be completed next March.
He said representatives from member countries would make individual visits to other friendly countries for possible tax exemption agreements.
The union aims to abolish customs charges, taxes and procedures and rules restricting trade among GCC members. In this new unified zone, a flat custom tariff of five percent would be applied for the rest of the world.
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Sep 8, 2010 00:00
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