Middle East | GCC Meets On Sharing Revenue; Customs Union Scheduled For 2003 ...

Middle East

GCC Meets On Sharing Revenue; Customs Union Scheduled For 2003

Customs chiefs from the six-nation Gulf Cooperation Council (GCC) met in Riyadh on November 10, to discuss a mechanism for sharing tariff revenue and other outstanding issues before the six members launch a free-trade and customs union on January 1, 2003.

The two-days talks focused on a compromise for the proportionate distribution of joint customs earnings and entry of alcohol and other imports which are allowed by some members, but banned by others. With less than three months to go, the six members have finalized all other major issues, including a common customs tariff set at five per cent.

GCC heads of state are expected to give their final endorsement of the customs union when they hold their annual summit in Qatar before the yearend. The GCC customs union, which covers more than 15,000 imported items, will give birth to the Middle East’s biggest economic bloc, with a GDP of nearly $320 billion in 2001, around 45 per cent of the combined Arab economy.

The GCC consists of Saudi Arabia, Qatar, Kuwait, the United Arab Emirates, Oman and Bahrain.