04 December 2005
KUWAIT CITY -- Leaders of the six-nation Gulf Cooperation Council (GCC) are to look into extending the transition period for a pan-Gulf customs union by two years to 2007, the GCC chief said on Monday.
The oil-rich GCC launched their customs union at the start of 2003 but gave member states a transition period of three years to complete requirements for the full implementation of the union.
"The leaders will study a proposal to extend the transition period for two additional years," at a summit next month, Abdel Rahman Al Attiyah said.
"This is not because of problems but as requirements for the transition period have not been completed, especially issues related to protection policies, export of drugs and food, the role of joint customs centers and distribution of customs revenue," Attiyah said.
Accordingly, the transition period will now continue until the end of 2007 instead of 2005, he said.
A number of joint customs centers were set up between member states to facilitate the movement of goods.
Under the union, member states will become a single customs zone in which the customs duty on foreign imports is 5 percent.
The GCC groups Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.
GCC states have agreed to share customs revenues temporarily on the basis of the final destination of imports, but have embarked on further discussions to reach a permanent formula.
Attiyah insisted that the oil-rich alliance's plans to set up a common market by 2007 and a monetary union and a single currency by 2010 are on course.
"They are progressing as per the timetable put by the GCC," he said, denying reports of plans to delay the single currency until 2012.
The GCC states have already agreed on several key criteria to bring their economic and fiscal policies closer and also approved setting up a central bank for the group ahead of the monetary union.
The alliance has a combined oil output of around 15 million barrels daily, and sits on more than half the world's proven crude reserves.
KUWAIT CITY -- Leaders of the six-nation Gulf Cooperation Council (GCC) are to look into extending the transition period for a pan-Gulf customs union by two years to 2007, the GCC chief said on Monday.
The oil-rich GCC launched their customs union at the start of 2003 but gave member states a transition period of three years to complete requirements for the full implementation of the union.
"The leaders will study a proposal to extend the transition period for two additional years," at a summit next month, Abdel Rahman Al Attiyah said.
"This is not because of problems but as requirements for the transition period have not been completed, especially issues related to protection policies, export of drugs and food, the role of joint customs centers and distribution of customs revenue," Attiyah said.
Accordingly, the transition period will now continue until the end of 2007 instead of 2005, he said.
A number of joint customs centers were set up between member states to facilitate the movement of goods.
Under the union, member states will become a single customs zone in which the customs duty on foreign imports is 5 percent.
The GCC groups Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.
GCC states have agreed to share customs revenues temporarily on the basis of the final destination of imports, but have embarked on further discussions to reach a permanent formula.
Attiyah insisted that the oil-rich alliance's plans to set up a common market by 2007 and a monetary union and a single currency by 2010 are on course.
"They are progressing as per the timetable put by the GCC," he said, denying reports of plans to delay the single currency until 2012.
The GCC states have already agreed on several key criteria to bring their economic and fiscal policies closer and also approved setting up a central bank for the group ahead of the monetary union.
The alliance has a combined oil output of around 15 million barrels daily, and sits on more than half the world's proven crude reserves.
© Middle East Times 2005
