RIYADH, 20 December 2002 — Gulf Arab states, preparing to launch a customs union on Jan. 1, have decided to put off the implementation of parts of the pact, a senior Gulf official told Asharq Al-Awsat newspaper yesterday.
Finance ministers of Gulf Cooperation Council (GCC) states who met in Doha, Qatar on Monday finalized procedures for the launch of the customs union without reporting any obstacle. But GCC assistant undersecretary for economic affairs Mohammed Al-Mazroui said the ministers had in fact agreed to delay the application of a number of steps for between one and three years.
“The ministers agreed that member states will continue to charge customs duty on goods bought from other states for a limited period,” Mazroui told the newspaper. He denied that the delay of some points would hinder the launch of the union which has been advanced from 2005.
“The GCC states have already agreed to the main conditions for the union, including the distribution of customs revenue,” he said. Secretary-General Abdulrahman Al-Attiya said in October that the GCC, which groups Saudi Arabia, Bahrain, Kuwait, Oman, Qatar and the United Arab Emirates cleared obstacles for the launch on Jan. 1, 2003. That included agreeing to a mechanism for the payment of customs revenues, a computer linkup between points of entry-exit of GCC states and the duties of joint customs centers.
GCC finance ministers in June agreed to distribute customs revenues on the basis of the final destination of imports. The agreement would be implemented for a period of three years before being reevaluated for possible changes. The customs union is seen as an essential step on the way to forming a Gulf common market.
The GCC states also approved a time-table for monetary union planned for 2005 and a single currency in 2010. The GCC annual summit is to take place in Doha on Saturday and Sunday to endorse arrangements for the customs union.
Meanwhile, Sultan Qaboos of Oman announced that he will attend the GCC summit in Qatar. Qaboos is the only ruler of the GCC who has so far confirmed participation in the annual summit.
