Turkey, GCC discuss creation of FTZ

By Azernews

By Gunay Hasanova

Turkey is largely expanding its economic and security relationships with its Arab neighbors in a drive to increase its role as regional power, since GCC states with their growing economic and financial resources and increasing political clout, are considered very strong enticing partners.

Turkish Foreign Minister Mevlut Cavusoglu discussed in the Saudi capital Riyadh with colleagues from the six Gulf countries the creation of the common free trade zone, said Saudi Foreign Minister Adil al-Dzhubeyr, RIA Novosti reported.

"The meeting with the participation of Turkish Foreign Minister has been very fruitful, we discussed the creation of a free trade zone between Turkey and the Gulf states to enhance the mutual trade and economic relations,"  said al-Dzhubeyr.

Moreover, he noted that the sides plan to talk about more specific details of the free trade with Turkey in the next meeting.

Member states of the Cooperation Council for the Arab States of the Gulf (GCC) signed a memorandum in the field of strategic dialogue in September of 2008, which aims to strengthen economic and political cooperation between the parties. In particular, they agreed to hold an annual meeting between the Foreign Ministries of the GCC and Turkey.

 Although Turkey and the GCC consider the 2008 MOU to be the "launching point" for their strategic dialogue, the parties began meeting in 2005 in Manama, where they established a framework for a free trade agreement. The aim of this meeting was to "institutionalize" modalities of cooperation to promote stronger relations in the future.

The GCC states see Turkey as a key supplier for diversifying food supplies, and they have inquired about the possibility of leasing "large tracts" of land in Turkey, or participating in joint ventures with Turkish companies, for cultivating crops -- particularly wheat and cereals.

In turn, Turkey is also working to develop deeper ties with the Arab Gulf in the military sphere.

In late 2015, during Erdogan’s third vis­it of the year to Riyadh a “strategic cooperation council” to strengthen bilateral military and economic co­operation was set up. Since then, Turkey has supported Saudi efforts at unifying the moderate Syrian opposition and confirmed partici­pation in the 34-country counter­terrorism coalition announced by Riyadh.

Turkey is also establishing a mili­tary base in Qatar. The base is designed to confront “com­mon enemies”, according to the Turkish ambassador to Qatar, and will station 3,000 personnel in air, naval and special operations units.

In turn, experts also consider that Turkey is developing as an increasingly important economic partner for the Gulf Cooperation Council (GCC) countries.

As the report of the Economist Intelligence Unit (EIU) indicates the trade turnover between Turkey and GCC was close to $16 billion in 2015, up from about $5 billion in 2005.