With the Gulf Cooperation Council (GCC) cancelling the 24th GCC-EU Ministerial summit, it is possible that an opportunity has been missed to try and find common ground for a decisive decision on few remaining obstacles to the long-awaited free trade agreement between the blocs.

While trade flourishes between the two, a FTA would make a qualitative difference. In particular, the reduced cost of moving goods and services across borders means increased commercial opportunities for those engaged in imports and exports.

European companies cite restrictive foreign ownership as a barrier to investing in the GCC, while GCC investors highlight cumbersome visa policies for business travellers as a challenge facing them in the EU. A series of tariff and non-tariff barriers to trade have also been identified as issues requiring negotiation in any planned trade deal between the two blocs.

Negotiations for a progressive and reciprocal liberalisation of trade between the two began following an announcement in 2001 on the creation of a GCC Customs Union. But the EU constantly brought up issues and demands that had nothing to do with trade, which led the more assertive GCC states to suspend bilateral trade talks at the end of 2008.

But to keep informal contacts between the negotiators ticking, an EU-GCC Joint Action Programme was agreed upon in 2010, but has failed to deliver meaningful results. The time is about right to reflect on existing realities and try and comprehend the consequences of failure.

European companies — financially constrained in their credit crunch-affected home markets — continue to win mega-projects across the GCC, but are increasingly facing competition. By not harping on the domestic policies of their trading partners, Asian countries have seized the momentum and reinforced commercial ties with the GCC.

The EU must realise that the economically vibrant GCC states have several bargaining chips, and would straight out refuse any trade deal on terms dictated by the EU. The EU must realise that it would be worth their while to offer a degree of flexibility.

With foresight, Brussels, the seat of power for the EU, should be paying as much attention to a deal with the Gulf as it is on clinching one for a Trans-Atlantic Trade and Investment Partnership with the US.

—The writer is an analyst on GCC-EU relations and based in Brussels.