By Martin Banks - 6th May 2009
External affairs commissioner Benita Ferrero-Waldner has said she is optimistic that an EU-Gulf free trade agreement (FTA) could be concluded by the end of the year.
The commissioner was speaking following a high-level meeting in Muscat, the Omani capital, where it was agreed that the stalled talks on an FTA should be resumed.
She said that although talks had been suspended, there had been "some bilateral meetings" and the EU had a "great interest in resuming negotiations as quickly as possible".
Ferrero-Waldner said that "new, innovative" ideas had been mooted, adding, "You know, there are only two issues left and, as always, these are the most difficult sticking points.
"Even so, with ambition, creativity, flexibility and, most importantly, political will, I am sure we can succeed.
"We have offered certain flexibility on our part and now we want to see flexibility from the Gulf side."
Also present at the meeting were Czech foreign minister Karel Schwarzenberg, whose country currently holds the EU presidency, and his Omani counterpart Yousuf Bin Alawi Bin Abdullah, who is also the current president of the ministerial council of the Gulf cooperation council (GCC).
The commissioner's comments were echoed by Aiman Abmbusaidi, an official from the Omani centre for investment promotion and exports development, a government agency set up to help market Omani products overseas.
He told TheParliament.com, "An FTA is crucial, particularly at the present time, because it would make trade between the two blocs much easier.
"But the EU must get more serious about this and inject more effort into concluding a deal."
Talks on an FTA, which have been going on for nearly 20 years, were suspended in December by the GCC, which represents six states in the region including Oman and Saudi Arabia.
The main reason for the suspension, according to most pundits, was the perceived lack of flexibility on the EU's side.
By contrast, the GCC has made considerable progress toward deals with China and India.
An FTA is seen as being particularly important at a time of economic downturn. EU officials say both sides stand to gain from such a deal which would pave the way for greatly enhanced trade relations between the two sides.
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