Looking east and south for partners

Although Asia is likely to receive the most direct attention from the Commission’s trade negotiators in the coming months, the EU has a number of existing commitments in the Middle East, Africa and Europe, that will also be on the agenda.

Most immediately, negotiations are ongoing on a free trade agreement between the EU and the Gulf Co-operation Council (GCC)?- Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates - talks that have been taking place for the last 15 years. Predictably, as is the case with similarly proposed free trade deals with Russia and Ukraine, the negotiations have focused on the energy sector, with the EU side pressing hard for unrestricted access to investment opportunities.

There is hope that the GCC deal can be signed before the end of this year, which supporters argue could double trade to almost €100 billion a year.

A new sense of urgency may come from India and China both negotiating trade deals with the GCC.

The EU also has ambitious proposals to complete a Euro-Mediterranean free trade area by 2010. This would create a free trade area among the EU and the ten countries of the southern Mediterranean

NGOs have warned that the agreement would do little to boost trade or welfare in the area, but would have a negative impact social and environmental impact in Arab countries. A recent impact assessment said that the FTA could promote longer term gains in the service sector. There are also substantial political difficulties related to the conflict with Israel.

Elsewhere in the region, free trade agreements are also being considered with Iraq and Georgia.

Although Asia is likely to receive the most direct attention from the Commission’s trade negotiators in the coming months, the EU has a number of existing commitments in the Middle East, Africa and Europe, that will also be on the agenda.

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