Finalization of Korea-GCC FTA... "Establishing Foundation for New Middle East Boom Expansion"

Signing of Joint Final Agreement Declaration on the Occasion of the Korea-GCC Ministerial Meeting

On the 28th, the Free Trade Agreement (FTA) negotiations between South Korea and the six Gulf Cooperation Council (GCC) countries, including Saudi Arabia, were finalized. This establishes a legal and institutional foundation for the spread of the 'New Middle East Boom' while creating an environment for expanding entry into the Middle East and Africa.

Andeok Geun, Director-General for Trade Negotiations at the Ministry of Trade, Industry and Energy, signed a joint declaration confirming the finalization of the Korea-GCC FTA negotiations during a Korea-GCC ministerial meeting with Jassim Mohammed Al Budaiwi, Secretary-General of the GCC, held at the Trade Center in Samseong-dong, Seoul. The GCC is an economic cooperation organization in the form of a customs union consisting of six countries: Saudi Arabia, the United Arab Emirates, Kuwait, Qatar, Bahrain, and Oman.

The Korea-GCC FTA is the 25th FTA concluded by South Korea (based on negotiation finalization). It is the second FTA concluded with Arab countries following the Korea-UAE Comprehensive Economic Partnership Agreement (CEPA) finalized last October. The GCC has FTAs with Singapore and the European Free Trade Association (EFTA) and is currently negotiating FTAs with the United Kingdom, China, and Japan. However, FTA negotiations with the European Union (EU), Australia, India, and Turkey are currently suspended. The Ministry of Trade, Industry and Energy expects that the conclusion of the Korea-GCC FTA negotiations will serve as an opportunity to strengthen cooperation in various fields as South Korea enters the vast GCC market with comparative advantages.

Director-General Ahn said, "Following the CEPA with the UAE finalized last October, the consecutive conclusion of the FTA with the GCC has become a major turning point for spreading the New Middle East Boom, and the cooperative relationship between South Korea and the Middle East has entered a new phase. Starting next year, we will focus on expanding trade and investment with the six GCC countries and, based on close cooperation with the GCC, intensively promote cooperation in industry, energy, and resources across the Middle East and the adjacent African region, maximizing synergy effects among trade, industry, and energy."

Andeok Geun, Director General for Trade Negotiations at the Ministry of Trade, Industry and Energy (right), and Jasim Mohamed Al Budaiwi, Secretary General of the Gulf Cooperation Council (GCC), are taking a commemorative photo at the signing ceremony of the Korea-GCC FTA Joint Declaration held on the morning of the 28th at the Korea International Trade Association in Gangnam-gu, Seoul.

Finalized After 15 Years Since Official Negotiations Began in 2008

The Korea-GCC FTA negotiations began with the first official talks in 2008 but were suspended for over 10 years after 2010 when the GCC side halted all ongoing FTA negotiations with South Korea, the EU, Japan, China, and Australia, citing a policy review. The negotiations resumed last year. The Ministry of Trade, Industry and Energy explained that this announcement of the conclusion was the result of holding two official negotiation rounds, numerous intersessional meetings, and chief representative meetings intensively, following a strong consensus on the need for a swift conclusion of the Korea-GCC FTA negotiations, which was formed as a series of summits between South Korea and major GCC countries were held this year.

The trade volume between South Korea and the six GCC countries, including Saudi Arabia, reached $102.6 billion last year. South Korea mainly imports energy and resource-related items such as crude oil, liquefied natural gas (LNG), and aluminum from the GCC. It also exports manufactured goods including automobiles, parts, machinery, and weapons to the GCC.

Expectations for Diversification of Export Items Including Medical Devices, Cosmetics, and Agricultural, Livestock, and Fishery Products

All six GCC countries are actively building industrial bases in non-oil sectors, including fostering domestic manufacturing industries, and large-scale infrastructure construction is planned. The government expects the Korea-GCC FTA to play a key role in diversifying export items to the GCC, including medical devices, cosmetics, and agricultural, livestock, and fishery products.

Additionally, through the Korea-GCC FTA, major GCC countries will open up sectors such as film and video distribution services, medical and dental services, creating an environment that can accelerate the spread of K-content and the Korean Wave centered in the Middle East. The agreement also includes digital trade norms that allow cross-border transfer of information collected locally in the GCC and promote e-commerce, laying the foundation for expanding the entry of Korean products and companies into the GCC using digital technologies. By easing entry and stay conditions for business purposes, which had been a major difficulty for Korean companies operating in the GCC, Korean business activities in the GCC will be facilitated.

In terms of trade norms, an agreement was reached on intellectual property rights covering copyrights, trademarks, and designs. This will strengthen the protection of Korean companies' intellectual property rights within the GCC, provide effective remedies against illegal distribution or product counterfeiting of K-content and products driven by the Korean Wave, and contribute to the stable spread of K-content and products in the Middle East region.

The Korea-GCC FTA also features an innovative and comprehensive economic cooperation system focusing on 12 areas through a separate economic cooperation chapter. Among these, six cooperation areas?energy and resources, bioeconomy, advanced industries, smart farms, healthcare industry, and audiovisual services?have individual annexes detailing specific cooperation measures, playing a key role in strengthening practical cooperation and supply chain collaboration between South Korea and GCC countries in these fields.

After the declaration of the conclusion of the Korea-GCC FTA negotiations, the government plans to proceed with legal reviews and Korean translation of the agreement text, aiming for formal signing next year. Subsequently, through economic impact assessments and domestic procedures such as parliamentary ratification in each country, the government intends to have the agreement come into effect as soon as possible. Furthermore, based on the Korea-GCC FTA, the government will consider concluding FTAs with Middle Eastern and African countries adjacent to the GCC that maintain close relations with the GCC.

This content was produced with the assistance of AI translation services.