Emirates Policy Center | Potential GCC-China Free Trade Agreement: Cementing Partnership ‘Beyond Oil’

Emirates Policy Center | Potential GCC-China Free Trade Agreement: Cementing Partnership ‘Beyond Oil’ https://epc.ae/en/details/brief/potential-gcc-china-free-trade-agreement-cementing-partnership-beyond-oil- Potential GCC-China Free Trade Agreement: Cementing Partnership ‘Beyond Oil’ Mohammed Barhouma| 20 May 2024 Key Takeaways The current circumstances are conducive to initiating a free trade agreement between GCC countries and China, owing to the consistent growth in trade between the two sides. However, various challenges must be addressed to facilitate this advancement. Addressing these challenges and accommodating the interests of both sides could foster an “institutionalized” character in GCC-China relations – a development desired by China, given the GCC’s significance as one of Beijing’s key trade partners and an essential energy exporter. Progressing toward a free trade agreement between the two sides could bolster China’s endeavors to align the Belt and Road Initiative (BRI) and GCC development plans, particularly in clean and renewable energy and climate change mitigation, notably over the next two decades. The past few years have demonstrated a mutual political commitment between the GCC and China to enhance intra-trade prospects. GCC countries are committed to diversifying their options, steering clear of polarizations, and engaging constructively with all stakeholders.