The Gulf Co-operation Council (GCC)

In May 1981 Saudi Arabia, Bahrain, United Arab Emirates, Kuwait, Oman and Qatar signed the agreement to establish the Co-operation Council for the Arab States of the Gulf (GCC). The Charter of the GCC lists the objectives of the regional organisation:

• To effect co-ordination, integration and interconnection between the member states in all fields in order to achieve unity between them;

• To strengthen relations, links and scopes of co-operation prevailing between their peoples in various fields;

• To formulate similar regulations in various fields, e.g. economic and financial affairs, agriculture etc.;

• To stimulate scientific and technological progress in various fields and to establish scientific research centres and implement common projects;

• To encourage co-operation by the private sector.

The vulnerability of the six participating countries as a result of their oil wealth, their small population size and the instability of the region was an important motive to establish the GCC.

In 1982 the Unified Economic Agreement was ratified. The aims of this agreement include free trade in all agricultural, animal, industrial and natural resource products of national origins within the region. In September 1998 member states accepted draft unified customs laws. In November 1999 the heads of state decided to establish a GCC Customs Union that will come into effect in March 2005.

For more go to the GCC section of the IMF website and the GCC Agence Europe page.

The EU-GCC relationship

After the creation of the GCC, the Council expressed its willingness to establish a close relationship and free trade agreement with the European Community. In 1988 the two regions concluded a Co-operation Agreement. The objectives of this agreement are to facilitate trade relations and market access and to contribute to strengthening stability in a strategic part of the world. The Commission implements a number of economic and decentralised co-operation activities. Under this Agreement, the EU and GCC foreign ministers meet once a year at a Joint Council/ Ministerial Meeting.

The Co-operation Agreement includes a commitment from both parties to enter into negotiations on establishing a free trade agreement between the EU and the GCC. The signing of such an agreement is conditional however upon the constitution of a GCC Customs Union. As the GCC decided to establish a Customs Union that would enter into force in March 2005, the path could now be open for the conclusion of a Free Trade Agreement between the EU and the GCC.

Further details

For more information go to the EU and Gulf cooperation Council section on the Europa, External Relations website.  

Document Download - Commission Communication
	Improving Relations between the European Union and the countries of the Gulf Cooperation Council (GCC)

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