The Gulf Co-operation Council (GCC) comprising of six oil rich nations Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates have agreed upon a common market access. This will enable nationals of these six nations to freely relocate and utilize the civic amenities provided by respective nations as their own. The Arab nations are inching closer to their main objective of having a single currency by 2010 with this pact. GCC was established in the year 1981 in the lines of European Union and Mercosur, the Latin American trade bloc. The GCC was able to reach a consensus despite Bahrain’s recent trade pact with the US.
But Saudi Arabia, the strongest among the GCC fears the Bahrain’s trade pact with US would allow the US goods to flow freely in the region throw the back door entry. But Bush’ visit to the region in the 2nd week of Jan 2008 is expected to put an end to this speculation through trade pacts with other GCC member states. In the background of slow economic climate prevailing in the US, Bush administration is most likely to make major compromises to ink every trade deal coming in their way. GCC’s plans to have a common market access are further aimed to gain bargaining power before ratifying the US initiative of Middle East Free Trade Area (MEFTA) by 2013.
There are concerns that common market pact may put pressure on already space constraint housing infrastructure of Qatar and UAE due to better living standards of these nations. Besides the pact has not included the migrant workers who are battered by the USD depreciation, the preferred currency usually used to support their families back home. However, the region and not to mention, the migrant workers hope that these pacts will serve as a foundation to the socio-economic outlook of the Middle East.