Asean eyes trade pact with Gulf countries

The Association of Southeast Asian Nations (Asean) may break new ground by partnering with the oil-rich countries of the Middle East grouped in the Gulf Cooperation Council (GCC), in the face of the global financial crisis and the collapse of the Doha Round of the World Trade Organization (WTO).

The Asian regional bloc is studying whether a free-trade agreement (FTA) with the GCC is workable within the next two years, with the aim of expanding trade and investments, specifically in renewable energy, tourism, information technology and communications between the two groups.

The Asean held a first meeting with the GCC—Bahrain, Saudi Arabia, Kuwait, Oman, Qatar, the United Arab Emirates (UAE)—in Bahrain on the spadework for such an agreement; and the implications of the Doha Development Agenda talks’ collapse, which is widely blamed on the failure of rich countries to make specific agricultural concessions.

But the underlying cause has been analyzed by development experts as the growing rejection of the WTO and the corporate-led globalization model by many people worldwide because of the ill effects of this model on their lives.

The meeting of the Asean and the GCC was thus believed significant in the face of the Doha collapse, and the joint statement indicated this fact, saying both regional blocs agreed “to study and make recommendations on free-trade agreement between the GCC and Asean; economic cooperation and development; and culture, education and information.”

Cochaired by Foreign Minister Shaikh Khalid Bin Ahmed Bin Mohamed Al Khalifa of Bahrain and Foreign Minister Kasit Piromya of Thailand, the meeting also noted the need to ensure oil and food security in both regions, through cooperation in the energy sector—including exchange of information on hydrocarbon energy and alternative and renewable energy.

It is significant that the International Renewable Energy Agency (Irena) will be based in the UAE’s    Masadar City, a planned eco-city near the capital Abu Dhabi that will be completely powered by renewable energy and which will have zero emissions.

The regional blocs have agreed to develop joint ventures in agricultural productivity, food-supply standards, including Halal food products, with improvement in infrastructure and logistics, as well as research and development.

At the same time, the regional blocs also stressed the need to strengthen cooperation to promote peace and stability in both regions.

The ministers of the regional blocs announced a plan to develop joint tourism ventures that would include medical and wellness services that would engage the private sectors in both regions.

The second meeting between the Asean and GCC will be hosted by an Asean member-country next year.