GCC and South Korea sign historic free trade agreement to enhance economic ties

The Gulf Cooperation Council and South Korea are set to bolster their economic ties with a new free trade agreement.

The deal, inked in Seoul by Jassim Mohammed Al-Budaiwi, the secretary-general of the GCC, and Ahn Duk-geun, the East Asian country’s minister of trade, marks a “historic step” toward achieving Gulf economic integration, according to a press note.

Al-Budaiwi highlighted that this signing resulted from conclusions spanning five negotiating rounds, reflecting the genuine mutual desire to strengthen the strategic partnership and foster economic cooperation between the two sides.

The secretary-general also stated that the agreement is expected to increase bilateral commerce, enhance trade in goods and services between the parties, and promote economic diversification plans in the Gulf countries and South Korea.

Additionally, he emphasized that the pact aligns with the directives of GCC country leaders toward strengthening relations with other nations and international blocs and achieving common commercial and investment interests.

Al-Budaiwi asserted that the agreement included 18 chapters covering trade in goods, services, and government procurement, as well as digital trade and cooperation in the areas of small and medium-sized enterprises.

Notably, this marks the second deal entered into by the GCC with its global counterparts in 2023, following the announcement of a similar arrangement with Pakistan in September.

“The signing of free trade agreements with both Pakistan and Korea, within three months, expresses the wonderful economic position that the GCC countries have reached, as a destination for countries of the world that seek to enter into many agreements and partnerships with them, especially the economic ones,” the secretary-general said.

He expressed pride and honor for the prestigious position the GCC countries have reached and the significant credibility they receive regionally and globally.

In September, Pakistan and the GCC signed a “preliminary” free trade contract at the headquarters of the General Secretariat in Riyadh.

In 2022, both sides held technical-level talks to examine the possibility of signing a free trade agreement to help Pakistan boost its exports to the six-country bloc made up of Saudi Arabia, the UAE, and Bahrain, as well as Oman, Qatar, and Kuwait.