JEDDAH, 19 October 2005 — Finance ministers of the Gulf Cooperation Council (GCC) states yesterday discussed the refusal by Iranian customs officials to allow the entry of Gulf-made products carrying the phrase “Arabian Gulf” on the label.
The ministers discussed a number of issues pertaining to Gulf trade cooperation during their Finance and Economy Cooperation Committee meeting in Jeddah.
At the top of the ministers’ agenda was a memo presented by the general secretariat of the GCC regarding Iranian customs refusing entry of products from Gulf countries which carry the phrase “Arabian Gulf.”
Omar Bahlaiwa, secretary-general of the Saudi committee for the development of international trade at the Council of Saudi Chambers of Commerce and Industry, told Arab News that there are bilateral agreements between each Gulf country and Iran but there is no unified agreement between all GCC countries and Iran which makes each country’s position weaker vis-a-vis Iran.
“The Iranians are very interested in having good relationships with Gulf countries, especially Saudi Arabia, and I expect a resolution to all issues related to trade soon. They have suggested creating a free trade zone and a shipping route but these things take time,” he said.
The point of dispute concerns what Gulf countries call the body of water between them and Iran. The Arabs call it the Arabian Gulf and the Iranians call it the Persian Gulf. “The dispute is about the name and not about the country of manufacturing,” said Bahlaiwa. “They might agree on simply using ‘The Gulf.’”
Another matter on the ministers’ agenda was the unification of pharmaceutical prices imported by Gulf states. This would be of great benefit to all. “Again, this goes back to having bilateral agreements between each Gulf country rather than with the group and this affects their leverage negotiation. This unified agreement would also address unifying standards and procedures,” said Bahlaiwa.
The Saudi delegation was headed by Finance Minister Ibrahim Al-Assaf and included Saleh Al-Barrak, general customs director, Dr. Hamad Al-Bazeie, deputy minister of economic affairs, and Dr. Abdul Rahman Al-Homaidi, deputy governor of the Saudi Arabian Monetary Agency.
The meeting was expected to discuss the mechanisms for economic cooperation between Gulf countries. They were also to address the issue of some Gulf countries signing individual bilateral agreements with other countries which includes customs exemptions outside the boundaries of the unified customs of GCC countries and the economic, legal and practical ramifications of doing so.
