26 total views, 2 views today
India and World – GCC
Political and economic union of the Arab states bordering the Persian Gulf and constituting the Arabian Peninsula, namely Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates
Total GDP $1.4 trillion
Proposed Currency :Khaleeji
The Supreme Council:heads of states;determines policy
The Ministerial Council:foreign ministers; draws up policy
The Secretariat General:drafts rules and regulations and helps countries implement
Among the stated objectives are:
formulating similar regulations in various fields such as economy, finance, trade, customs, tourism, legislation, and administration;
fostering scientific and technical progress in industry, mining, agriculture, water and animal resources;
establishing scientific research centers;
setting up joint ventures;
unified military presence (Peninsula Shield Force)
encouraging cooperation of the private sector;
strengthening ties between their peoples; and
establishing a common currency by 2010
A GCC common market was launched on January 1, 2008. The common market grants national treatment to all GCC firms and citizens in any other GCC country, and in doing so removes all barriers to cross country investment and services trade.
Oman and the UAE later announced their withdrawal of the proposed currency until further notice.
On May 10, 2011, a request by Jordan(expertise in military and developed technology) to join the GCC was formally being considered and Morocco(has a well developed military that could assist in Saudi Arabia’s efforts in the Yemen conflict) was invited to join the council
A customs union was declared in 2003, but practical implementation has lagged behind
31st GCC Summit was held in Abu Dhabi from December, 2010. The Summit decided to go ahead with the third phase of the GCC power grid which will streamline the electricity generation, maintenance and consumption in
GCC. It voiced support against terrorism, pledged support to all regional and
international efforts aimed at combating terrorism and called on the international
community to establish a global centre to fight terrorism.
sees the uprisings as an unprecedented threat to regional security.It wants stability more than anything.The bloc backed a no-fly zone in Libya
On March 14, the GCC’s Peninsula Shield Force, with troops from Saudi Arabia and police from the United Arab Emirates, entered Bahrain to help quell the protests there.
It is interesting that the two countries that experienced intense protests in the GCC region were Oman and Bahrain – both relatively poor countries. And, both – bolstered by the $20 billion assistance from the other GCC neighbors – have met political challenges in part with lavish financial inducements to key sectors of society.
Saudi Arabia too has invested at least $130 billion to create jobs, build houses, pay bonuses and create unemployment benefits, among others.
Started discussing bids of Jordan and Morocco to bolster their military.
Importance to India:
Bilateral trade: $85bNearly 40 % of India’s crude oil import is met from GCC countries.
offers tremendous potential for cooperation in trade,
investment, energy, manpower etc
This region hosts nearly 5.5 million Indians.The oil-rich Gulf
States with their massive oil revenues are engaged in an ambitious economic
development and modernization programme, which has created a demand in GCC
States for skilled manpower and labour
GCC countries have mutually beneficial complementarities
with India in the field of investments.India has
successfully bid for oil blocks in Yemen, Qatar and Oman. Efforts are ongoing to
setup joint ventures in downstream petrochemicals, fertilizer and energy intensive
industries in the gulf and in India
The Gulf countries provide an excellent market potential for India’s
manufactured goods and services, especially in project services exports.
In an effort to build a tax base and economic
foundation before the reserves run out, the UAE’s investment arms, including Abu
Dhabi Investment Authority, retain over $900 billion in assets. Other regional funds
also have several hundred billion dollars.
Framework agreement was signed in 2004. 3 rounds of negotiations were held.
It was agreed that the
proposed FTA will also include services and investment besides trade in goods.Negotiations are going on.
5th round of political dialogue was
strengthening up of India-GCC relations. Economy, trade and industry were stated as
top priority as well as exchange of views on security issues
“The Gulf region, like South-East and South Asia, is part of ournaturaleconomic hinterland. We must pursue closer economic relations with all our neighbours in our wider Asian neighborhood. India has successfully pursued a ˜LookEast” policy to come closer to the countries of South-East Asia. We must, similarly,
come closer to our western neighbors in the Gulf.”-PM