The 17th GCC Heads of State Summit and Aftermath

70 Pages·2009·7.5 MB·English

by  John Duke Anthony

US-GCC
GulfC ooperCaotuinocni l:
CORPOR ATE Bahrain + Kuwait+O man
Qat+a Sra uAdria bia
CooPERATION·
UniAtreaEdbm irates
COMMITTEE INC
�., "., co·�. i�,, fli�"l .. . i �f!la.{ £{I o.t. <.2l� ''"a (JOr<J"ai, JJ·.E conornl.._. ur "
i!'
• •
PotnPtastt,e rPnrso,g nosts
The1 7thH eadSst ate
GCC of ·
•
\\• X).(\SummAftietrm ath• :
•
and
·
Whitthhee r /}
· GCC?
· .
/>
�sh r 7z
by
..')
'�.· � � ....
JohDnuk eAn thony
OCCASIONAL
A
p
p E R ���
cz, �
1ll
S, I
E R E s
Mq�
'('l'yv'\o V\ BORDrn
(;0 B E R 8
;::::J
' ' <20�\ -\\CS �nerg_v0
-
<I!J
fl:tusa
0
PubliisnAh sesdo cwiiattthhiN eoa nt ionalo nUC So-uAnRrceailbla t;ions
T A B L EO F c 0 N TE N T s
PointPsa,t rtnesP,ro gnosis
The1 7tGhC C Headosf S tatSeu mmiatn dA ftermath:
Whithetrh eG CC?
FoREWORD
. .D,r.Ra lpbyh R DiSibio
INTRODUCfiON 1
ECONOMICAND COMMERCIAL ISSUES 2
EconRoimigcofh GtsC CC itizens 3
TariIffsI: n tra-TGaCriCffs 4
EconoCmihca lefolesrn t ghFeu ture 5
ForgiEnngd uTrirnadegR elatihoipnss 6
TariIffsIE :xt ernaTla rifft 7
InteFrnactaloa rnsEd xt ernTaarilffs 11
TariIffsI PIr:o groenTs arifsfU nification 13
Implicaofti oGanC sC -ETUr ade Agreement 18
PoLITICAL AND FoREIGPNo ucv IssuEs 20
Iraq 24
Iran 26
ThMied dElaesP te aPcreo cess 28
Terrorism 31
SECURITYAND DEFENSIES SUES 33
IntraD-efeGnCsCCeo operAa BtiaolnaS:nh ceee t 35
ThDea mascuDse clarCaotiuonnt ries 38
France 39
GreaBtri tain 40
ThUen itSetadl es 41
CONCLUSION 45
TribaNliastimo,n aSuli psrma,n ationalism 46
ThFeu tofu trheGe C CD·re amo Rre ality 50
Foreword
Eacyhe athre,h eadosfs tatoef th e siGxu lCfo operatiCoonu nciclo untriecso nvefnoer
theianrn ual summit in ofoth nee membceoru ntriecsa'p itaInls 1.9 9the6 ,1 �H eadosf
StatSeu mmitt oopkl acienD ohaw herteh hee adosfs tataen dm emberosfth eir
delegatidoinssc usissesdu oefms u tuaclo ncern.
This repowrats w rittebnyt hSee cretaroyfth eU .S.-GCCoCrp oraCtoeo peration
Committee who attentdhesedum mi t.Th e repoardtdre ssethse summit'tshr ee
primarayg endiat emesc:o nomipcosl,i tiacnsdd, e fen·sWei.thin thesthree e rubricist,
alspor ovideisn formatiaonnd anal ysiso ns pecifici ssuwehsi cohc cupitheedS ummi t's
agendsau,c ahs e fforttso u nify external tariffs; estabhlmiesnotf a c ommon market;
furthern ecesssatreypp su rsuatnoft o rgianfr ge etr ade agreewmieththn etE uropean
Uniona;n dth e memberpso'is tionvsi s-aIr-aviqs, Irthaen ,M iddle Easptr opceeascse,
weaponosfm assd esutrctiotenrr, orisamn,d th eifre llDoawm ascsDu eclaration
countrieosfE gypatn dS yria, amongo thert oipcs.
A concludeisnsgaa yt temtpotsp roviadb eal ancseh eeotfh owf athre GCChas come
upt othis poinatn dw hati tpsr ospeacrtsfe oprr ogresfsurthienrg. As youw ills ee
wheny our eathde repother tc,o mmentary andana lysiasr per esenwtiethdth e
intereosfta sb road arorafUy . S. foreignan aalffyairsstsp ,o licymaaknedr s,
decisionmiank ermsin d.
Thisi sth e eigihntht hUe. S.-GCCCo rporaCtoeo peratiCoonmm ittee'sse rioefs
Occasional Paopneth resr oloefth e GCCi nr egionaanld w orlafdf airThes . Committee
presethnitssm onograpihn th e spiorfali lti tosth erp ublicatipornosgr,am sa,n d
activitiaesas c ;o ntributitoonth e nationald ialogounAe m ericainn teraensdt s
invlovemeinntth e GCCr egion.
Dr.R alpDhi Sibio
President
ParsonDse velopmentCompany
·
and
Chainnan
U.S.-GCCCo rporaCtoeo peratiCoonmm ittee

POINTS,P ATTERNS,P ROGNOSIS
THE1 7™G CCH EADSO FS TATES UMMIT
ANDAF TERWARDS:W ITHETR HEG CC?
by
JohnDuk e Anthony
INTRODUCTION
The 17tha nnuaGClC headosfs tatseum mitc onveneidnD ohaQ,a tarD ecemb7e-r9 ,
1996This. gatherinwga sb othsimilar toa ndd ifefrenfrto me acho fi tpsr edecesIsto rs.
wass imilar inth es ense.thtahtpe arti cipanftosc usoendc aeg ain oni ssuoefps a n-GCC
inrtees·ta ncdo nceInrn .k eepiwnigth e acohf th ep reviomuese tingsd atinfrgo mth e
GCC's establiins 1hm9e8n1tthe, primary focuwsa so ne conompiocl,i tiacnadld ,e fense
topics.
Amongth em ositm portainsts udeesl iberawteerdthe o sere latetod th eE conomiUcn ity
Agreemenotf1 981Also. importawnetr oen goicnogn cernsr elatetd oIra q,Ir anth,e
MiddleE aspte acper ocetesrsr,o risma,n dth es preoafd weapoofman sss destructi.o n
. aIdnd tiionb,o thwi thin anda partfr ome acohf th esec aterigeost,h seum m iteers
considethreem du ltifacetiemdp licaotifoa ns se rieschan goefs -globarle,g ionaanld,
nation-aolnth eG CCr egions'hso ratn-dl onger-dteevreml opmepnrtoaslp ects.
Twoth ingdsif fer��tiatethdi ss ummit froalmlthe otherOsn.e w asth en early
simulntaeoucso nvenionfg several other regional ofm meaejtionirgm sp ortantcothe e
GCCc ountrieInste.r -governmenmtaele tingisnG oa,Jakarta, andS ingapionrw ehi ch
promineinntetrna tional leadeardsd resosilea dn dg asp,e acaen dj usticande ;
internationalb usinesiss,s uoefsd irienctte rteoths etm embesrta tes; ovewriltha pped
the summit..
The secomnodr,ei mportante rdeifnfwcaes Bah rain'sa bsenBcahreai.n 'sd ecisitoon
boycothtet s ummit was unprecedenteandd wasc ommented uunfpaovno rably.by
everyopnree seAlntla. gr eedth ati tasb senwcaesa m ajor embarrassment.
Bahrain'rse asfoonnr o ta ttendwinagsi tsl ong-stanadnidnm gu ltifacetedte rritorial
dispuwtieth th es ummihto sQta,t aThre. dispuwtase n oto nt haeg endiank, e eping
witGhC Cp olithcayt b ilatperroabll ebmest wemeenm berssh oubleds olvbeidl aaltlye.r

2
This saiadt,th e endo fth e meetingB,a hraisnu cceeidneg de ttintgh es ummiteetor s
agreteoc omprisaef our-natiocno mmitteet oc onsitdheedir s put-ea s ignificant
departur efr omG CC proceduIrnea .m eeting inC airo onth e sidelionfte hsela te
December 199b6ian nuals essioofthn e D amasc usD eclraatiocno untrie-sth e six GCC
statesp,l uEsg ypantd Syria -Bahrainan'ds Q atar'fso reiminigns tersa greedt om eetin
RiyadihnJ anuariyn a ne ffortot s ettthel ed isputOen.J anua8ra yn d1 2th,e mediation.
committaenedth e ministersd idm eetA.s a re sultth,et woc ountriesl'e adeargsr eeads,
afi rsstte pt,o c eastheeir hostimleedia campaignsa gainst eacohth er.
Bahraianb'sse nfrcoem th es ummit didn oth,o weveprr,e vethnet a ttendfreoems
dealing withth e businaesthas n d.This repohritg hlightsth e summita'csh ievements
andan alyzethse iirm plicatiofnoskr e yU .Sin.t eraneds tfso reipgonli cyo bjectivIet s.
alsfoo cusoens whawta sn ota ccomplisInh seodd .o inigt, examintheesr easoannds
offersa p erspecotinvth ee prospefcotspr r ogriensth se peraihoeda d.
The repoirsbt a sedo nt haeu thoro'bss evartionansd meetings and disicnDu oshsai ons
with summit participants.T heana lysiiss s upplemenbtyie nfdo rmationa ndi nsight
derivefrdo m subsequveinstian tsd meetingsf ollowthien sgu mmiwti tho fficialsin the
GCC Secretariina Rti yadahs wealswl i thl eadeirnfs o uro ft heo rganizations'isx
memberc ountries.
ECONOMICAN D COMMERCIALI SSUES
Viewefrdo m the outsideth,e GCC is seenas different btyhid nigffse rent pTeoo ple.
manyi,ti sa g eopolibtilcoaoclfm onarchicraelgim esth ata rek eetno p erpetuathteei r
moderate-to-conssyesrtevmsao tifgv oev ernanceT.o s omei,ti ss eeasn being
preoccupwiiethmd atterpse rtaining to·nationaanld regionald efenswe ealasls
domestisce curiTtyoo. th ersi,rt e preseabn otlsad n da mbitioeuffso rttoe stablisha
custounmiso na nd eanc onomciocmm on marketa lonthge lineosf t hEeu ropean
UnionT.os tilolth erits ,is m ainly af oruimn w hicthh em embercsa nair perspectives
oni ssuoefsr egionwimipdoer tancwei tha vi ewt ofo rging greatceoro peration.
Fromi tisn ceptiothne ptroe sethnet G,C C has beeannd remainalsl f ouorf th eset hings
andm oreIn. th e wordtso this writbeyra m embeorf th e GCC'sM inisteCroiuanlc il,
the organization's pproilincycif poarulml atinbgo dy",A tt hee ndo fth e dayw,e a re
seekintgoi mprovthee securaintyd m ateriwaell l-beoifon ugrp eoplAlel.th e efforts
relatteodd e fenalsleth; e deliberawtiiotnhsci onm mittaeensd, our meetings away
from asw elasl at tsumhmie tsa rea imeda to neo verarcohibnjge ctitvope r:o tecwth at
weh aveb uianldt toe stabliass htr ongfeoru ndatisounp portiovfpe e acseta,b ilitya,n d
prosperfiothtyre preseanntdth e future."
3
Atthis summitk,e yp rovisioonfts h e GCC'sE c1o9n8o1mi Ucn ityA greeme(nEtU A)
receigvreeda teerm phasithans ata nyG CC heaodfss ta tmee etinfgo qru ites ometi me.
Tob es ureea,ch s ummitd evoteesx tensivaet tentitoothn e d egroeefp rogresasc hieved
ini mplmeentinthge E UAb ecauistie sth efi rsatn dt,o d ates,i ngle most iomfp ortant
theo rganization'asg reemenAtdsd.i tialolny,th eo verwhelming majoriotfyth e
Secretars2i 9a0f- strosntafgfw orkyse ar-romuainnldy one cononlaincde conomic­
relatiesds ues.
The added emphoanes ciosn ommaittce rsa tthi s year'ssu mmiwta sth ere sulotfthe
memberdse'ci sitoonp laces ucihs suneesa thre topo ft heairg endTah.a dte cisioann,d
thep romineanttte ntiogni vebny th eho st--venuael sfoo thre 1 99Mi7d dleE asatn d
NortAfrihca Economic Sumtmothi etne -edt oa ccelerparitvea tsee ctpoarr ticipation
inth e memberc ountriedsev'e lopmepnrto cesrseefsl,e tctehdem embersc'o ncernw ith
theim pacto fg lobatrle ndosn their ecionntoemirce sts.
A b�oamdi xo fv erys pecifiecc onomic einsgsaugethesed p articipainn tthsi sr egard.
Thesei ncludneodto nlthey pernnialely vexinigs suoefhos w to unify theierx ternal
-custohmosw, toe nhanceth em ovemenotfg oodsse,r viacnedsl ,a bowirthin theG CC
regiohno,w toa ttramcotr ef oreiagnn dl ocpalr ivasteec tionrv estmenatsn,dh owt o
gaignr eataecrc etsosth e markeotsf th eimra joerc onompiartnce rs.It also included
sucrhe latiesds uaeshs o wto regismteorr e effepcrtiovger etsso wareds tablisah ing
custoumniso na ndin stilling am uch greaters ensoefe conomicictiz enshiapm ongth e
sisxt atpeeso'p les.
EconoRmiigcofh tGsC CC itizens
The EUA wasn oti ntendtoe bde a nal l-embracidnogc umernetq uirinings tant
implementatiIto wna.sm eantt ob ev ieweadsa b luepraisna tb ,r oadsltya tgeudi deline
fothre di rectioinnw hichth e GCCs'f oundeernsv iiosneodri entintgh eeicro nomies
ovethre lontegremr.
Neitheirst heE UAf ocused mainolnyth e questioonftarif f s.T ariffsa rbeu to nea mong
numeroouthse ri ssuaedsd resstheeds ,u mo fw hicihsa imeda te nhancing the
memberisn'd ividaunaldc olcltieveec onmioc strengathn dp romotinthge iprr oweass s
ane nlargtreaddin g bloc.
Amongo therg oalisse nlargemoefthn etb asoef e conomic invoblevtewmeeaennntd
amongG CCna tionals. In thisr egarthde,G CC hass oughttoi ncretahsneea tuarned
numbeorfo pprotunitifeospr r ofessicoenalrstifi eidn o neG CC counttropy r actiinc e
anyo fth e otherC CCc ountries.
This is ana reianw hictheh GCC has achievedc onisderapbrloeg reFsosre. x amplea,s
ar esuolfat s ummidte cisrieoanc hsehdo rtlayf ttehr1e 9 9-0199K1u watiC risis,
accountanatrsc,hi tedcenttiss,ts d,o ctoernsgi,n eearnsd,la wyerwsh ose credaerneti als
4
validiantK eudw aiatr een titlteodw orikn s,a yOman,, Qatar, or ientl hsGeeC wCh ere
regiIno then .U nitSetadte sAm,e ricainsnth escea teghoravieye estt owin such
privil-egabe rso ardan ogfep rofesscieornaltifisei dno nset actea nnmootv te oa nother
stataen db egpirna cthtiecrewe i thoubtei rneg-c ertifibeythd e a ppropariuathtoer ities
in thats tate.
A brekathorugohfm ore tandgimibelnes iwoansrs e achaetdth eG CCs ummithtr ee
yeaargso A.sa r esualntyci, tiz eno fo neG CCc ounitrseyn titlteodo wnr eaels tiante
anoy ft hoeth eGrC Cc ountriAesas c .o nsequoefdn ececi siroenasch aetdo thGeCrC
sumimtsth,e ci tizens aonfGyC Cc ounatrryae l so taoab vlaiethl e mselveosfl ow-cost
businleosasfrns o ma noyf th er egioangr'isc ultubruasli,na ensdis n,d ustrial
developfmuenndAts k .e pyr ovihsoowv,ee ri,ths a tt hreeci pieonfst u cbhe nefiwtosrk
and lini thev ec ountryw hichp rovithed elso an.
Therea roeft eandminis trative restrictioannds c ontidoinaliintith eessa en do ther
measudreessi gtnoee xpda ntdh cea tegoarinedesx teonfet c onorimigch atsn db enefits
foGrC Cn ationAasli snth. e U nitSetadt easn dp racticaelvleyor thye cro untrym,a ny
whos eetkoa vathielm selofv seusc phr ivileencgoeuson tbesrta claetts h lee voefl
implementaInti thoenG .C Cc ountrieasse lsewhtheerraeer, b eu reauacrnadpt est ty
officiawlsh og uarjdea lotuhesi lsys uaonfpc eerm iatnslid c ensIne asd.d ition,
parochialisma ndo thefro rmosfp rejuadniddc iecrimins atiocna cno mien top lay.
The importanpto inhto,w eviesthar t, no to nlwye rseu cphr ivilneogens-exi stenat
decaadneda half agow hethne G CCb egathne;yw ere envoetdn r eamoefad s a
possibwiilithinty thel ifetimeo fth osweh oi,nthe intervefifteneinn gy eaharvse,
workedm atkothe e m a reMaolrietyo.vth eern ,u mboefrG CCc itizewnhso h ave
avaithleemds elovfthe ess oep portunitie-sc urreinnthtl eyf ew thou-scaonndtisn ues
tog row.
TariffsI I: ntra-TGarifCfsC
Sincea s eaarslM ya rc1h9 8the3 ,GC Cc ountrieeliminast ed intraC-CGtarif fs onl ocally
manufactguoroedthdsa th avaeminim um of4 0%va lauded epdr,o vithdaet5d 1 %o f
thec ompapnryo ducinthge item isb yoa Gw CnCen da tionIna lth.u sa bolishing
custocmomsp leteolnsy u chl ocally-pgroooddsusoc lwedid thi nth es ix-satartetheae ,
membecro untrhiaevsae d vcaensidg nificanitlnty h dier ectiobne coofmin agm ore
integratrtaeddi bnlgo c.
This compavreersfy a vorablayn yow thiethr grooufAp riancbgo untrieesl sewhIne re.
AraNbor thAfri ca,th eL evatnhtNe,i lVea llaenydt, h Fee rtiClree scneonthintg,
remotceolmyp arahasb lbee eanc hieved.
Yetl,e tshits a ssessmenta sunb deu lsryeo esniy it,sim portant toou wtpha otih nats
yetot tr anspBiarrer.fi unrgt ehceorn odmiivce rsifiacnadbti eotntm earr kaectc ess
5
withithne GCC,f oerxam ple,the prospefcottrsh GeC Cs, becominegn lthaer ged
tradinbgl othact itfso unders enviwsiillro enmaine du ncertain.
EconomiChca llenfogre sth eF uture
In manyw aysth,e e conomifcu tuprreso pecftso trh eG CCr egiareo nmi xed.In
generald,e mographtriecn d-sth eG CCc ountrihaevse o ne ofth ew orldh'isg hest
popluatigroonw th rat-esc ouplweidt grho winugn employmenatn din creasing
demandissf ,o marn y policymakane runse,n dincgh allenThgeer.e i sn oq uicfixk in
sight.
A constancto nstrainitsth es imilarity ofthe GCCc ountrieecosn'o miesAl.l sriexlo yn
oielxp ortfso thre vasmatj oriotyf th einarti onal revenueTsh.e ye xpothisr t oinlo tto
eacohth erb,u tr ather to mamrukcehfurthet rs afielidnA siaE,u ropaen,d the
Americas.
'·
Dealing withth ei mpliocnastio fthis phenomenfoonthr e ihro peosfe stablisahinn g
incarseingilnyt egreacteodn omic ehansti notyt beeena syT.o the members tates,
policymakers andd eciisonmakeristr, emains asd auntinagsa nyoth er singlcehal lenge.
The GCC countries' ecocnoommimce,r cainald,i ndustripalanln ersh ave worharkde d
to altthise r realiAsta yr .e suthlet l,e voefli ntra-GcCoCmme rces,tartin g from al ow
base ofa pprximao tel3y% o f theierx tteornalttr aald ehas, experiensciexd- fao ld
increase.
The challencgoen tinuteors e ceihviegp hr ioriinthety membecro utrniesstr'a tegic
plannin g.F ore xamplien,ca rseinngum berso fi ndustriinalv estaorrebs u ilding
factorini ethse belitheaftth ey willb e abtleos elthle iprr oductnso tj usttothe local
market butt othe entirGeC C regioBnyan. y standarthisd ,r anksp raosg reYsests.,u ch
investhoarvsye e tot acats a g routpoe nsutharte then umerous obsttaocth leeisr
objecti-vpeosl itical, alnedtg eachnli,c al( e.ign.trmina,e bldee laaytsb ordcreors sings,
arbitraaryn di nconsiasptepnlti caotifro ulne as ndr egulatiothen slim,i tede fficacyo f
existidnigs pumteec hanismasn,ds oo n)- areelimina ted ors ignificantly decreased.
Thus,i mpressaisiv tme a ys eemi nth e abstratchtre,a taen de xteonftp rogriensthis s
arehaa sy etto mak e as ignificantd enti nth e continuinagc utdee pendeonnce ex ports
ofe nergtyoth e industrialized and neiwnldyu trializisng nationsE.v eni nS audi
Arabiaw,h erien dustrialization aesax ma ijsotsr n ationeaclo nomsitrca teagnyd m ore
than 2,00f0a ctoarriiee nso peratiionnd,u strys'hsa rienth eKin gdom'sG OP,a lthough
growindgo,en so te xcee1d3 %.
Farm oreti me,f amro re investmenftar,m ore econionmitce grafarti omno,r ep rogress
ini ntilsling ani ndustriale thosa mongthe citizenry in generaanld,f amro reh eadway
in eliminating intra-regainodnae lx ternmala rkebta rriweilrlsb er equirbeedf othree