EU-Gulf free trade agreement would be 'mutually beneficial'

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By Martin Banks
- 10th March 2009
The current economic crisis makes this a particularly good time to finally conclude negotiations

John Purvis

UK deputy John Purvis has endorsed calls for a speedy resumption of stalled negotiations on a free trade agreement (FTA) between the EU and Gulf states.

Purvis, a member of the EPP-ED group, said such a deal would be "mutually beneficial" to the EU and countries like Oman and Saudi Arabia.

The discussions, which have been going on for nearly 20 years, were recently suspended by the Gulf cooperation council (GCC), a body comprising six Gulf countries.

One of the reasons was a GCC objection to the EU's insistence that a clause on human rights and democracy be inserted in any future agreement.

Purvis is a former deputy chairman and now a substitute member of parliament's delegation to the Gulf states.

He said, "The FTA negotiations have been continuing for some time but have been held up for various reasons, one of which was that the Omani's had problems with it.

"I understand they have now come round but there is an ongoing issue over human rights."

He added, "This FTA is important to both the EU and the Gulf states but the current economic crisis makes this a particularly good time to finally conclude negotiations and stabilise relations."

Another dimension, said Purvis, is the planned Nabucco gas pipeline, which would link Caspian and Middle Eastern suppliers to Turkey and on to European markets.

"It is clearly in the EU's interests to diversify its energy suppliers and it would be a good idea to bring gas directly to the EU from the Gulf, rather than relying on Russia.

"If an FTA can be agreed it would hopefully assist in this regard and get the Nabucco project moving."

His comments are echoed by GCC member and UK Socialist MEP Claude Moraes, who was born in Yemen and is also a substitute member of the Gulf delegation.

He said, "Strengthening trade links with the Gulf states is particularly important at a time of global recession. It would, therefore, be good to get these FTA negotiations going again."

A new body, entitled the Gulf policy forum, was recently launched in parliament in a bid to inject new momentum into the FTA talks.

A successful FTA has wide-ranging implications, he said, as the GCC is Europe's sixth largest export market and the EU is the GCC's first trading partner.

Trade volumes between the two sides have doubled in the last five years and currently stand at slightly more than €90bn.

Meanwhile, professor Rudolf Johannes Schotting has given the inaugural lecture as Sultan Quboos academic chair at a ceremony at Utrecht university in the Netherlands.

The academic chair, a Dutch initiative, was established in honour of the Sultan's 35-year reign and is sponsored by Dutch and international companies.

Since his appointment, Schotting has been involved in several water projects, not only in Oman but also in Algeria and Saudi Arabia.

At his inaugral lecture on 2 March, ex-Dutch premier Dries van Agt said Schotting is "eminently positioned to generate love for geo-sciences and different cultures.

"Indeed, this is of crucial importance. Water can easily be a source of conflict and a reason to divide," he said.

The lecture was followed by a seminar on water management, including water resources in Oman, one of the Gulf Cooperation Council states.

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