Weak IPR makes GCC-6 seek individual FTAs with India
Financial Express, India
Weak IPR makes GCC-6 seek individual FTAs with India
Huma Siddiqui
16 September 2006
NEW DELHI, SEPT 15: Weak implantation of intellectual property right (IPR) in the country and different legal systems operative in the member-nations of the Gulf Cooperation Council (GCC-6) have led them to seek individual free trade agreements (FTAs) with India.
According to sources, negotiations for an India-GCC-6 FTA have come to a virtual standstill. Diplomatic circles said the move has run into major roadblocks. The GCC-6 countries-comprising Qatar, Oman, Bahrain, Kuwait, UAE and Saudi Arabia-are expected to formalise their own free trade area in the next few months.
“The issue of weak enforcement of IPR laws and the recurring cost of standard compliance in GCC countries in the FTA negotiations that India is going to have with these members have put on hold further discussions,” pointed out officials.
“The idea of having a trade bloc was mooted at the meting of India and GCC-6 countries earlier this year in Muscat. However, due to lack of consensus amongst member countries, the negotiations have now been stalled,” said sources.
The India-GCC-6 FTA is expected to open over a billion consumers’ market for the Gulf countries. The FTA, likely to be signed in near future, is also expected to spur two-way trade, investment and commercial activities.
Mohammad H Albadah, director, Embassy of Kuwait in New Delhi told FE, “Laws in all the member countries are different and it is unlikely there would be any unanimity amongst them. However, individual FTAs would help in exchanging technology in various fields.”
The FTA is expected to...
• ...open over a billion consumers’ market for the Gulf countries
• ...spur two-way trade, investment and commercial activities
• ...help in the exchange of technology in various areas
• ...give immense opportunities to the Indian pharma and chemical industry
“We have been looking for a comprehensive India-GCC agreement for a long time. This would help promote trade relations between the GCC and India, and would also bring the two sides closer to each other,” said Saleh Mohd Al Ghamdi, Ambassador of Saudi Arabia in New Delhi.
India is the third country apart from Japan and the US to have become a dialogue partner of the GCC.
Senior commerce ministry officials said India has already initiated discussions at the ambassadorial level. “We have just started the process of holding talks at the ambassadorial level with the six countries. It would take a few months for us to analyse the pace of things,” said an official.
They, however, said it was too early to say when the final agreement would be in place. An FTA in the region will benefit India substantially as the six members control around 45% of the world’s recoverable oil wealth and 20% of gas resources. They supply about a fifth of the global crude output.
An FTA will also provide immense opportunities to the Indian pharma and chemical industry to export their products to the Gulf region. Of the six countries, India’s ties are the strongest with Oman. India wants to use Oman as the stepping stone in the Gulf region for the successful completion of an FTA with the GCC-6.
Officials said while Oman has been pushing for an immediate FTA with India, India would like to wait for some more time and get into a joint agreement with all six countries.
