GCC trade agreement Research Paper Example | Topics and Well Written Essays - 2250 words

GCC trade agreement - Research Paper Example, the trade agreement encourages intraregional mobility of majuscule, technology, goods and capital hence allowing component countries to easily access resources and goods that they dont have comparative advantage. The monetary core besides allows for easy economic exchange between the countries through the use of a single currency. in that respect is also a trade agreement between GCC and European Union (EU). This trade agreement also affects the economies of GCC member states by expanding trade into new regions of Europe and improving the economic and social welfare of the nation of the member states. Specifically, the FTA between GCC and EU enables member states to acquire imports at internationally competitive prices. This is achieved through cut back tariffs and other trade barriers between GCC member countries and the member countries of the EU.In article 1 of chapter 1 (Trade) of the 2001 economic agreement of the GCC, a comm on external tariff and a common customs regulation was effected to enhance trade among members and prevent unfair competition from external corporations (GCC, 2001). Goods produced within any member untaught were also considered as the national products of each country. Furthermore, tariff and non-tariff barriers were eliminated. Article 2 provides rules on international economic relations whereby member states are required to negotiate incorporatedly as GCC in order to coiffe the negotiating positions of member countries (GCC, 2001). Economic agreements with external trading partners should also be collectively concluded to serve the interests of member countries. Export and import rules and procedures, and commercial exchange policies of the region are also unified to enhance its collective negotiating power with international partners.Bahrain is one of the six members of the GCC which is affected by the trade agreement among the GCC member states. foreign other members of th e Gulf Cooperation Council, Bahrain does not rely on oil. The country