The Gulf Cooperation Council (GCC) countries have set their eyes
on China for a trade agreement that will give them access to
one-fifth of the world market, the Gulf News reported in Abu Dhabi
Saturday.
Finance ministers and other senior officials from the Gulf group
will fly to Beijing in late May to discuss a proposed trade and
economic cooperation agreement similar to the one they signed with
the European Union nearly six years ago.
The talks will be followed by another round of negotiations
later this year to discuss details of the agreement, which was
proposed by the GCC a few years ago.
An official from Kuwait reportedly said that the GCC countries
have previously discussed the agreement with Chinese officials, but
progress was delayed until after the establishment of the GCC
Customs Union. They are now hopeful the talks will be more useful
and constructive, although concluding the agreement is expected to
take some time.
The GCC became a single trade and economic bloc with the
establishment of the Customs Union on January 1, 2003, and it is
now intensifying efforts to negotiate with other countries and
economic blocs.
Analysts said that a pact with China would benefit both sides.
Commercial exchange and investment between them have swelled in the
past two years as a result of China's worldwide export offensive
and a campaign by the GCC countries to find new markets for their
petrochemicals, aluminum and other products.
From a negligible value of less than US$1 billion in mid-1980s,
Sino-GCC trade jumped to more than US$12 billion in 2003, of which
nearly half was Chinese exports, including electronics, toys,
watches and machinery.
GCC states, which control more than 45 percent of the world's
recoverable oil deposits, have also become the top crude suppliers
to the most populous nation and the fastest growing market in the
world.
China's reliance on Middle Eastern oil is likely to increase
sharply as its own crude resources are being depleted quickly.
(Xinhua News Agency May 9, 2004)