ASEAN eyes forming trade pact with Gulf Cooperation Council

The Association of Southeast Asian Nations (ASEAN) recently dropped another hint that they might try to strike a trade pact with the Gulf Cooperation Council (GCC) as the former tries to boost its trade with partners outside the region.

A free trade agreement (FTA) between the two blocs is likely, ASEAN’s Secretary-General Kao Kim Hourn told the press on Friday.

“There is a request from the GCC to have a FTA with us. I think they are confident in wanting to cooperate with ASEAN, and this is a positive development,” Kao was quoted by local media in Jakarta as saying.

ASEAN and the GCC have agreed on a framework document that laid out the ways they could bolster their cooperation over the coming years. Both sides are eyeing to conduct further consultations, among others, on developing a “framework arrangement” on economic cooperation, said the document.

Kao did not say when the actual negotiations will begin. However, he emphasized that this is an important event, creating a premise for GCC-ASEAN trade cooperation to develop in the coming time, opening up opportunities for both blocs.

According to the ASEAN chief, ASEAN and GCC held their first summit in Riyadh last year. At the conference, some leaders of ASEAN countries such as Indonesian President Joko Widodo and Malaysian Prime Minister Anwar Ibrahim also talked about the possibility of promoting a trade framework between the two blocs.

Saudi Arabia's state news agency Al Arabiya reported last October that ASEAN-GCC trade exceeded $110 billion. The GCC encompasses Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates (UAE).