In face of the current economical-political crisis, unusual allies join in effort to keep the head above the water. In the last six months, Shiites joined the Sunnis in order to stabilize Iraq, the United States is ready to ‘turn the page’ with Russia, all in the name of stability, of any kind. Another unusual cooperation exemplify in the negotiations between the European Union (EU) and the Gulf Cooperation Council (GCC) towards a Free Trade Area agreement (FTA).
Both the EU and the GCC are engaged in the negotiation for 20 years. During that time, a cooperation agreement was signed in 1989, which favored both goods and trade between them. A favored partner, according to the EU and the GCC, enjoys priorities and lower taxes on import and export. This agreement set the bar toward the highest level of cooperation of all: Free Trade Area agreement. Nevertheless, although negotiations began with a great deal of optimism, an FTA was never signed. The reasons for stall varies, but considered entirely to EU’s will to gain more political influence in the Middle East.
Europe was shaken (and still is) from the economical crisis, hitting at its shores. GDPs growth is negative for the first time since decades and analysts predict that 2009 would be the first time that product per capita will decline to its lowest level since the end of World War II. Gulf States are in a better situation; although oil prices declines sharply, GCC countries are more conservative in their risk management policy. This enabled them to save $1-$1.2 trillion in cash. Their will (and patience) to reach an agreement with the EU is stretched to its limits.
Why can’t we all get along?
There is one main problem preventing the negotiations to result in an agreement; the European Union cannot accept having a business partner with colliding values with regards to human rights and political participation. Although the European Union trades with China (which has political problems itself), and with Russia, the GCC in the eyes of European policymakers cannot become an FTA member, due to its backwardness in reforms of civic status and liberties. The GCC on the other hand, becomes less and less eager to sign an agreement that may endanger the, already politically fragile, region.
The cooperation agreement, signed in 1989, is the ground basis document for the negotiations on an FTA agreement; in this document, one can easily read, that no consents were made except for economical cooperation between both parties. So where does this feverish will to influence on the political reality in the region comes from?
Foggy Articles, Vague Interpretations
As mentioned, the agreement clearly states that cooperation between the parties concentrates in economical cooperation. Nevertheless, a vague reminder to the commitment both sides have to encourage region’s peace and stability may be the cause for interpretations by the EU to justify its actions in the political field as well. Needless to say, GCC delegates halted the negotiations several times only because the EU representatives kept on insisting that the GCC will accept political reforms in their own countries (such as political participations, i.e. free elections).
However, these suspensions (of the negotiations) did not stop EU countries (in the name of the EU) launching initiatives striving for political reforms. For example, Sweden held in Cairo a seminar for potential candidates in GCC countries, training them on how to recruit votes and money to their campaigns (which never took place in those countries before). This can endanger a possible cooperation for the EU with a partner that can bring a great deal of benefits, even in future political influence in the Middle East.
What’s in for Europe?
There is a number of benefits which the EU can enjoy from; firstly, energy. The EU faced in the last years problems with Russia’s gas supply and not due to technical problems. Russia turn the stream tap as Europe does not agree with Moscow’s political agenda. It happened in the Georgia Crisis in summer 2008. It will happen again in the next round of disagreements over Russian behavior. The GCC, with the help of Turkey, can set a direct pipe from the Mediterranean Sea to Europe insuring a free stream of gas, in lower prices (favored partner) and put into act the Euro-Med initiative.
Secondly, the European Union can become more accessible for GCC investments and (accumulated) cash flows, enabling an ignition boost to EU’s damaged economy. Moreover European countries, under the FTA agreement, will gain access to trade precious know-how in the field of renewable energy, which the GCC become increasingly interested in, and in return can prevent from researchers to become unemployed.
Thirdly, and this is considered as the long-range revenue, the EU will gain back lost political influence, and promote its own values of human rights and political participation in a better, stronger position. Albeit, the window of opportunities between the GCC and the EU decreases, as the GCC is being courted by other, easier to manage, partners. Two of them are China and India, both closer and the latter has no problems with GCC’s rule of law and political values.
In conclusion, the European Union should not ignore its own standards of human rights and political participation. But in order to gain political influence in a region that requires stability and sustainability, the European Union should be more flexible in its demands from its counterparts. Especially when it’s not ‘one standard for all’ and the greater good (i.e. political influence) is in sight, much closer than one can imagine. The benefits from such cooperation outnumber the ethical issue which in time can, and will be, solved.