Economic, Regional Issues to Be Discussed at 21th GCC SummitLeaders of the six Gulf Cooperation Council (GCC) states will discuss economic issues and regional affairs of common concern at the 21st GCC summit opened in Manama, Capital of Bahrain, on Saturday.An economic and political alliance established in 1981, the GCC groups Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates (UAE). Economic issues are expected to top the agenda of the two-day summit. According to the agenda finalized by the GCC foreign ministers late Friday, the leaders will for the first time take up the subject of a single currency. The foreign ministers have discussed common economic policies aimed at paving the way for the creation of the projected single currency and reached a consensus that the U.S. dollar would be the currency to which the Gulf currency will be pegged. The consideration of a single currency is a step forward to Gulf economic integration and trade liberalization after an agreement to unify customs tariffs was reached at the summit held last year in the Saudi capital of Riyadh. The GCC leaders will discuss the implementation of the customs tariff union agreement and a policy to allow GCC citizens to own real estate in any of the member states. Under the agreement, the tariffs would be exempted on food and some basic items. And the tariffs on essential goods such as those needed in industry and agriculture would be set at 5.5 percent by March 2005 and the duty on other goods, including cars and luxury items, will be at 7.5 percent. However, in a bid to accelerate the process of unifying tariffs, the GCC foreign ministers have suggested the customs union to be set up in 2003, two years ahead of the schedule. Regarding the political and regional issues, the GCC leaders will discuss the latest developments in the Middle East peace process, especially the Palestinian-Israeli peace talks. They are to reiterate GCC's support for the Palestinian struggle for the establishment of an independent state with Jerusalem as the capital and the return of Palestinian refugees to their homeland. Relations with both Iraq and Iran will again occupy a key position in the GCC summit's agenda. The GCC members have repeatedly urged Iraq to comply with the relevant United Nations Security Council resolutions for the world body to lift economic sanctions on Iraq imposed after its 1990 invasion of Kuwait. They also called for concrete steps by Baghdad to show that it has given up "hostile stances" towards Kuwait and Saudi Arabia before beginning possible dialogs. The GCC summit will discuss a report submitted by a tripartite committee about Iran's control of three islands in the Gulf, namely the Greater, Lesser Tunbs and Abu Musa, over which the UAE also claims sovereignty. The GCC formed the committee in July 1999, comprising the foreign ministers of Oman, Qatar and Saudi Arabia. The panel is responsible for setting up direct talks between Abu Dhabi and Tehran. But there has been no breakthrough so far.�� Iran seized the Greater and Lesser Tunbs in 1971 after Britain withdrew from the region and annexed Abu Musa in 1992. The three islands dominate the approach to the Strait of Hormuz, through which about one-fifth of the world's oil supply passes. |
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