FTA with Gulf States promises substantial benefits
FTA with Gulf State Promises Substantial Benefits
Tuesday, January 02, 2007
Press Release - Ministry of Trade
The Minister for Trade, Warren Truss, said that the Australian Government would be seeking free trade agreement (FTA) negotiations with the Gulf Cooperation Council as soon as possible. The GCC comprises Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.
Mr Truss said the GCC was an important and growing market for Australia, our ninth-largest overall, with exports worth $4.8 billion in 2005/06.
"The GCC is the largest market for Australian exports of motor vehicles, and a valuable market for a range of agricultural goods, metals and services. The GCC, which is aiming to achieve a common internal market by 2007, is currently engaged in FTA negotiations with a number of its trading partners," Mr Truss said.
"Given the importance of the GCC market to the Australian motor vehicle industry, it is imperative that we maintain and consolidate our competitive position in that market to underpin future growth and employment in the Australian industry."
Mr Truss said he was pleased with the level of support for FTA negotiations demonstrated by his Saudi Arabian counterpart during recent ministerial consultations in Riyadh.
"I was encouraged by that reaction, and I hope that augurs well for successful negotiating outcomes," he said.
After the suspension of FTA negotiations with the United Arab Emirates (UAE) in 2006, the Australian Government commissioned a study by the Department of Foreign Affairs and Trade into the merits and feasibility of an FTA with the GCC.
Mr Truss said the study found that an FTA would maximise Australia’s long-term commercial interest in the GCC, a region that was experiencing strong economic growth and was implementing economic reforms that promised greater market openness in the future.
"I am committed to securing new trade and investment opportunities for Australian companies as a result of these negotiations.
"Given the challenges inherent in such negotiations, I will be taking a close interest in the progress made towards a comprehensive agreement," Mr Truss said.
