A possible collaboration between ASEAN and the GCC may be on the cards as the world shifts toward embracing a collective economic growth outlook. ASEAN has dropped hints that the ten bloc nations want to join hands with the Gulf Cooperation Council to formulate a trade pact intended to bolster their trade prospects.
Also Read: Chinese Yuan Strengthens Against the US Dollar: What’s Going On?
GCC and ASEAN: What’s Happening
ASEAN recently expressed its desire to strike a strategic deal with the GCC to bolster its collective trade avenues. According to ASEAN’s secretary, General Kao Kim Hourn, there’s a request being made by the GCC to form an FTA with ASEAN as a step to initiate the collective endeavor.
“There is a request from the GCC to have a FTA with us. I think they are confident in wanting to cooperate with ASEAN. And this is a positive development,” Kao told reporters in Jakarta.
Just like ASEAN, the GCC comprises six powerful nations, notably the UAE, Oman, Bahrain, Kuwait, Qatar, and Saudi Arabia. The trade request initiated may play a pivotal role in reshaping ASEAN and GCC. The collab may boost the nation’s collective strength, helping them establish control over the world’s leading resources.
ASEAN/GCC: Details on the FTA
Per the Jakarta Globe, GCC has requested an FTA, or first trade agreement, with ASEAN to formulate initial trade proceedings. This may entail saying yes to a framework that outlines policies through which the nations can achieve global trade prowess. The document further shares how both sides are busy conducting consultations to reach a possible consensus.
Also Read: Currency: USD In Trouble As Putin Proposes Crypto To Evade US Sanctions
It is to be noted that Indonesia had earlier proposed that GCC nations join its existing RCEP agreement. To simplify it further, the RCEP agreement would have allowed the GCC to explore trade proceedings spanning 30% of the global GDP.