I recently had the honor to chair an EPP-ED (European People’s Party and European Democrats at the European Parliament) delegation visiting the Gulf region. Our meetings with key regional leaders shed more light to the potential for dialogue and cooperation between Europe and the Gulf and highlighted the unquestionable — yet not unbridgeable — disparities in political views.
Twenty years after signing a cooperation agreement, the EU and the Gulf Cooperation Council (GCC) have still not concluded a Free Trade Agreement and their negotiations arrived at a standstill last December. Meanwhile, the EU has concluded numerous bilateral and regional trade agreements and the GCC achieved considerable progress in negotiating such agreements with China and India. Whether the reason for the delay is the human rights clause, the trade imbalance or the financial crisis, one thing is certain: Both the Gulf and Europe need each other.
Europe is the world’s largest economy, largest exporter and the second largest importer of goods. Europe remains the Gulf’s first trade partner while the GCC is currently the EU’s fifth partner. We should take note of new elements in the EU-Gulf equation, such as the emerging economies, especially China and India, the role of Russia in energy, and today’s decline in oil demand — the first since the 1980s.
The latter is crucial given that EU exports to the GCC are diversified, whereas EU imports from the GCC consist mostly of fuels and derivatives.
In analyzing the stalemate, commentators stress that the Gulf got increasingly tired of the EU’s lack of decisiveness and flexibility in the FTA negotiations, and even more so of its attempts to link “merely trade issues” to “purely political”. Therefore, the question at stake is: Is the EU trying to implicate the unwilling Gulf in political issues through the FTA, or is the GCC using the human rights clause as a pretext to avoid negotiating purely commercial yet thorny issues?
The truth is somewhere in the middle. Yes, the European Union does not and cannot act at the international level as a multinational company. In doing business, the EU is obliged by its legal framework and compelled by its citizens to respect political values and principles, including fundamental rights. Human rights clauses, included in the EU’s bilateral or regional agreements, set a basic common level of understanding.
After all, respect for fundamental rights, especially labor rights, is important also in terms of fair economic competition and sustainable human development.
This is the message that our delegation tried to convey to the members of the Saudi Arabia’s Shoura Council and the Emirati Federal National Council. Even though these assemblies differ greatly from European parliaments in terms of functioning and powers, they can contribute to reanimating the trade negotiations and to pave the way for mutual political respect and dialogue.
The EU-Gulf relationship is still driven by business but the potential for a political partnership is exciting. We should cooperate closer in the fields of blue air space, sovereign wealth funds, clean energy and water management, but also address together the Iran issue. We need to merge our efforts in finding a sustainable peace solution in Palestine, coordinating our actions and objectives as donators and investors. Today, Europe and the Gulf are pieces of a common geopolitical puzzle; they have to tackle the same global challenges, be it the financial crisis, energy stability or the climate change. The leaderships of Europe and the Gulf need to pool their efforts to ensure that their citizens may study, work and live in a secure, peaceful and prosper environment. We are after all neighbors sharing common frontiers, the Mediterranean and the Middle East.
— Mrs. Rodi Kratsa is vice president of the European Parliament.
