Pakistan and Gulf Cooperation Council (GCC) on Friday signed a “preliminary” free trade agreement (FTA), which will come into force after an internal administrative and approval process.
Inked between caretaker Commerce Minister Gohar Ejaz and GCC Secretary General Jasem Mohamed Albudaiwi, the FTA agreement follows negotiations between Pakistan and GCC states in Riyadh. “Both parties looked forward to the expeditious signing, ratification, and implementation of the agreement, which will mark a new chapter in the economic relations between our parties,” read a joint statement issued after the meeting, held from Sept. 26-28 at the GCC Headquarters in the Saudi capital.
Speaking to media at the signing ceremony, Ejaz said Pakistan had excellent relations with all GCC member states, adding the FTA would ensure the country’s economic ties were commensurate with these relations. “The preliminary FTA between the [GCC] and the Islamic Republic of Pakistan comes in recognition of the importance of strengthening trade relations and economic cooperation with countries and international blocs,” added the joint statement.
It said Albudaiwi had noted the economic agreement represented an important turning point in cooperation and would contribute to growth and prosperity in a way that served the common interests of both sides, as it emphasized the vital importance of close cooperation between countries to strengthen economic relations. He further stressed that GCC countries were moving forward with free trade negotiations with other countries, aiming to open and enhance the prospects for trade and economic cooperation for GCC member states regionally and internationally.
The GCC secretary general also thanked negotiating teams from GCC states and the General Secretariat for their efforts and dedication during the negotiation process.
The preliminary FTA was finalized in January 2022, in line with the earlier memorandum of understanding on Strategic Dialogue between the two sides. It marks the first time, since 2009, that the GCC has inked a FTA with any country.