Question

Gulf cooperation Council (GCC)

1- Key characteristics of GCC?

2-Objective and goals(social,economic)?

3-Effect on food trade ?

4-Achievement & drawback?

5-Future goals and expectation?

Answer 1

Gulf Cooperation Council (GCC)

It is an association of several Arab nations like Saudi, UAE, Bahrain, Kuwait, Qatar and Oman etc.. It was established in 1981.

(A). Key characteristics of GCC

1.most important feature is the formation of customers union. Main highlights of CU are free trade among member countries and a common external tariff for outside member countries.

2.They have common cultural economic and social identities. Because they are Muslim nations.

3. Economic cooperation or integration

4. common tax policies and military policies between member countries

(B). The objectives of the GCC are as follows

1. To create unity among its member countries

2. To foster economic cooperation among member countries

3.To strengthen relations among citizens

4. To establish regulation in various fields like agriculture, industry, fishing etc.

(C). Effects on food trade

Gulf countries are rich countries because of their oil exploration. They always seek to achieve food security or food self sufficiency with the optimum allocation and utilisation of available resources. Food security is a major concern of GCC. they are trying to achieve their target in each policy implementation. But target remained far beyond their actual capacity because of the improper policies threatened their agricultural sustainability. Actually their soil has limited with fertile cultivable land. So that efficient plan and policies are essential to achieve food sufficiency.

Gulf countries under the guidance of GCC, food products are largely imported from other countries especially from ASEAN. The government tries to provide sufficient food grains and maintaing their citizen's standard of living.

(D). Achievements and drawbacks

1. Formation of Customs union

2. Introduction of common tax policies like VAT

3. military cooperation among member countries.

Important drawbacks are

(a)  they cannot pursue food sufficiency. Still depending on other nations for food grains. Another drawback is (b) they could not expand their membership circle, two countries submitted their application. But remained without any proper decision due to different interest among member countries. There are many Arab nations, so in order to maintain integrity among them, should give enough space to others. So regulations must be loosened for some advantages.

(E). Future goals and expectations

1. A comprehensive economic cooperation among them in order to attract foreign investment.

2. They are expected to grow by 4.5 % of GDP in 2025.

3. Oil price reduction may leads to output falls. So they expect to increase their growth in non oil sector.

4. They are expected to grow their defense market by 2%.

In short, GCC is an Arab nations organisation functioning for the welfare and we'll being of their member countries. It actually reflects the integrity among member nations.