Business | Economy
Free trade accord with GCC to get shot in arm
The visit of Shaikh Mohammad to China will give a push to bilateral commercial relations and the negotiations toward a free trade agreement with the GCC, official sources said.
- By Ahmed A. Elewa, Senior Reporter
- Published: 00:09 March 31, 2008
- Image Credit:
- Workers in Shanghai, China, where non-oil trade between the country and the UAE has risen from Dh48.4 billion in 2006 to Dh71.2 billion in 2007.
Abu Dhabi: The visit of His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, to the People's Republic of China will give a push to bilateral commercial relations and the negotiations toward a free trade agreement with the Gulf Cooperation Council, official sources said.
Figures show that there has been an increase in non-oil trade between the two from Dh48.4 billion in 2006 to Dh71.2 billion in 2007.
This reflects a very positive trend in the econ-omic relations between Dubai and China in a growing number of investment sectors.
Sultan Ahmad bin Sulayem, chairman of Dubai World, said in a recent statement: "China and Dubai have excellent bilateral relations. China is a major trading partner for Dubai and we give high importance to further strengthening the relationship between the two countries. China has succeeded in building a very impressive economic base.
"Dubai World is a major investor in China through its projects in Qingdao and Shanghai ports, and is looking to expand into other areas.
"The visit to China by Shaikh Mohammad comes within the scope of furthering cooperation and economic ties between the two countries."
Dubai World's statistics show that non-oil trade between Dubai and China has risen steadily in the past five years.
There was an increase of 37.5 per cent in 2004. In 2005 it was 30.7 per cent. The rate of growth was 35.2 per cent in 2006 and 47 per cent in 2007.
China and the Gulf states have been negotiating a free trade agreement for some time.
The negotiations that started on April 23, 2005, have completed four rounds, the last of which was on July 19, 2006 in China, when the two parties agreed that the accord must include several chapters related to trade in goods and services, and the negotiations on services trade are to proceed after the completion of the goods trade framework.
"In the first round, the two parties agreed on the general framework, the issues to be considered, the negotiating mechanism and the formation of the negotiating teams.
"Exchanges of statistical data on bilateral trade and the schedules of customs duties, as well as the suggested articles covering the overall agreement were also established," Juma Mohammad Al Kait, Director of Trade Agreements and the World Trade Organisation Department in the Ministry of Economy, told Gulf News.
"There have been some obstacles, especially in relation to the UAE exports of some petrochemical products to China, where some big corporations expressed discontent. But with the new government in China, the political will now is set to overcome all these hurdles, taking into consideration the interests of other corporations and the benefit of the two negotiating parties," Gao Yusheng, the Chinese ambassador to the UAE, said.
In the second round, the parties agreed that, as from the first day the agreement takes effect, custom duties on a substantial number of goods will be eliminated, and the remaining groups of goods will be placed in two categories, the first of which will be subject to a gradual reduction of custom duties within a specific timeframe, while the second will be subject to full exemption upon the termination of a transition period.
"The two parties initiated the negotiations related to the services trade in the fourth round, where the GCC has submitted a draft suggestion for the chapter that is currently being considered by the two sides," Al Kait said.
Business Editor's choice
-
Do unemployment figures flatter to deceive?
Jobseekers and recruiters give out mixed signals ranging from optimism to downright despair even as official data show recovery
-
Banks can increase their share
Longer opening hours, more locations outside cities and lower charges can help
-
Geepas idea blossomed in Dubai
The journey led from a small shop in Bahrain to a $1.27b company in the UAE
