Resumption of 'Han-GCC FTA' Negotiations After 13 Years: "Establishing a Foundation for Energy Cooperation"

Yeo Han-gu, Head of the Trade Negotiation Headquarters at the Ministry of Trade, Industry and Energy, held a joint declaration signing ceremony on January 19 (local time) at the GCC Secretariat in Riyadh, Saudi Arabia, to officially resume the Korea-GCC FTA negotiations with Nayef Al-Hajraf, Secretary-General of the Gulf Cooperation Council (GCC), and took a commemorative photo.

[Asia Economy Sejong=Reporter Dongwoo Lee] The Ministry of Trade, Industry and Energy announced on the 27th that the 4th round of free trade agreement (FTA) negotiations between Korea and the six Gulf Cooperation Council (GCC) countries will be held in Seoul for four days starting from the 28th. The negotiations are expected to cover discussions on goods, services and investment, small and medium enterprises, and cooperation.

On the Korean side, the negotiation team will be led by Lee Kyung-sik, the chief negotiator of the Ministry of Trade, Industry and Energy’s FTA negotiation office, with representatives from related ministries including the Ministry of Trade, Industry and Energy, Ministry of Economy and Finance, Ministry of Agriculture, Food and Rural Affairs, Ministry of Science and ICT, Korean Intellectual Property Office, Ministry of Oceans and Fisheries, and Korea Forest Service. On the GCC side, the negotiation team will be led by Abdullah Al Harbi, the chief negotiator from the GCC Secretariat, along with representatives from the GCC Secretariat and the six member countries’ relevant ministries.

The Korea-GCC FTA negotiations began after both sides agreed to pursue an FTA in 2007 and held three rounds of talks until 2009. However, negotiations were suspended due to the GCC’s review of its foreign policy. Last October, the head of Korea’s Trade Negotiation Headquarters met with the Saudi Minister of Commerce to lay the groundwork for resuming the FTA, and in January of this year, an official agreement to restart the Korea-GCC FTA was reached with the GCC Secretary-General, marking the resumption of negotiations after 13 years.

The GCC is the largest energy supplier to Korea, providing 59.8% of Korea’s total crude oil imports as of 2021, making it a key partner in resource cooperation that contributes to Korea’s stable energy supply. The region has significant growth potential in terms of population, income, and potential, and is pursuing industrial diversification including the promotion of manufacturing. Therefore, it offers high potential for cooperation in future industries such as domestic manufacturing, renewable energy, and ICT.

The 4th round of negotiations will focus on discussions in areas including goods, services and investment, rules of origin, customs and trade facilitation, general provisions, intellectual property rights, and small and medium enterprises and cooperation.

Chief negotiator Lee Kyung-sik stated, “Through the FTA with the resource-rich GCC countries, we aim to strengthen economic cooperation by expanding trade and investment and facilitating corporate entry on both sides. Additionally, in the context of high oil prices, this will establish a stable energy cooperation foundation with the resource-rich GCC countries and contribute to securing supply chain stability.”

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