Doha – The political leaders of the Mercosur and of the Gulf Cooperation Council (GCC) want to conclude the free trade agreement under negotiation between the two blocs this year. “I spoke to my dear friend [Abdulrahman] Al-Attiyah and we are certain that we are finally going to sign the agreement this year, as a very significant step forward in the relations between South America and the Gulf,” said the minister of Foreign Relations of Paraguay, Alejandro Hamed Franco, quoting the secretary general of the GCC.
Paraguay currently occupies the rotating presidency of the Mercosur and, as such, on this Tuesday (31st), Franco signed a communiqué on the status of negotiations, alongside Al-Attiyah and the minister of Foreign Relations of Oman, Yousef Bin Alawi Bin Abdullah. Oman occupies the temporary presidency of the GCC, a bloc that also comprises Saudi Arabia, Bahrain, Qatar, the United Arab Emirates and Kuwait. The meeting took place at the Sheraton Hotel, in Doha, during the 2nd Summit of South American-Arab Countries (Aspa).
The document does not set deadlines, nor does it indicate what will be the solution for the impasse in the process, which has not progressed since early last year. The problem is that there is opposition to the liberalisation of trade of petrochemical products from sector companies in the Mercosur, which fear the competition of the Gulf industry. As a response, the GCC negotiators are threatening not to make significant concessions in the food sector.
According to the Brazilian foreign minister, Celso Amorim, the declaration expresses “political will” from both sides for reaching an agreement “that is going to be very important and bring huge benefits.” “Naturally, it is a complex deal, because there are interests and concerns on both sides,” claimed Amorim.
Franco said that the governments are going to “redouble their efforts” in order to conclude the agreement, and that the potential for trade between the two blocs “is enormous.” “The Gulf countries need our production and experiences, and the opposite holds true,” he said.
He also said that a delegation from his country, representing the Mercosur, is going to travel to the Gulf soon in order to continue with the process. Questioned as to whether the current impasse is going to be overcome, the minister said: “We have got to negotiate.”
According to the communiqué, the heads of state of the countries involved have “instructed their ministries and agencies to increase the frequency of meetings in order to conclude the negotiations quickly” and “underscored the need to explore creative solutions for the matters that remain pending.”
*Translated by Gabriel Pomerancblum
