South Korea and the six-nation Gulf Cooperation Council (GCC) have agreed to reach a free trade agreement (FTA) by the end of next year, officials said Wednesday. This week's meeting will be focused on laying the foundation for an early completion of the free trade talks,” South Korean deputy Trade Minister and chief negotiator Lee Hye Min told reporters, as both sides started the first round of free trade negotiations in the South Korean capital Seoul. The meeting is expected to last two days. The GCC includes Bahrain, Saudi Arabia, Oman, Qatar, the United Arab Emirates and Kuwait. “Both sides agreed in principle to wrap up the negotiations by the end of next year,” Lee was quoted by the national Yonhap news agency as saying. “There are not many sensitive issues between the two sides, so negotiations will go smoothly,” he predicted. Lee told The Korea Herald that it was agreed in principle to hold not more than four rounds of talks. According to the daily, Lee expressed urgency for a trade pact with the GCC, emphasizing the risk of South Korea falling behind other major economies in having a strategic trade accord. “The GCC is now in talks with Japan and the EU, so a failure of Korea to secure an FTA with this region would hurt our industries.” Lee's office said in a statement the FTA with the GCC would help South Korea secure a stable energy supply. The GCC countries hold around 40 per cent of the world's oil reserves. South Korea bought $53.5 billion worth of energy resources, mostly oil, from the six Gulf states last year, accounting for 72 percent of its total energy imports. Two-way trade reached $66.1 billion last year, and the GCC is the Asian country's fifth-largest trading partner. The GCC nations are also a key market for South Korean builders who received construction orders totaling SR14.4 billion last year. South Korea has actively pursued the conclusion of FTAs with major trade partners. As a result it has signed free trade deals with 16 countries, including Chile, Singapore, and the European Free Trade Association (EFTA), ASEAN and the US. Negotiations with the EU, Canada and India are currently underway.
