The Gulf Cooperation Council (GCC) and Indonesia have launched negotiations for the Indonesia-GCC Free Trade Agreement (I-GCC FTA) at the Trade Ministry in Riyadh.
The event was marked by the signing of a joint statement by the GCC Secretary-General Jasem Mohamed Albudaiwi and Indonesian Trade Minister Zulkifli Hasan.
According to the Saudi Press Agency (SPA), this agreement further signifies the official commencement of talks to forge a comprehensive trade deal aimed at boosting trade and investment between the GCC member states and Indonesia.
Expected framework and outcomes
Furthermore, the proposed FTA is expected to establish a framework for enhanced cooperation, streamline regulations governing investments, and create new employment opportunities. This development underscores the shared commitment of both sides to deepening their economic partnership and exploring novel avenues for collaboration.
GCC’s strategic priorities
The GCC Secretary-General emphasized that the initiative to commence FTA negotiations with Indonesia aligns with the GCC’s strategic goals of expanding relationships with key international partners. He further highlighted that Indonesia holds a priority status for the GCC as they pursue agreements that reflect the shared desire to strengthen economic ties.
Potential impact on GCC’s economic vision
Additionally, the FTA is anticipated to serve as a crucial platform for advancing the GCC’s economic diversification strategies and achieving their broader economic visions.
Timeline for negotiations
Moreover, the initial round of negotiations is scheduled to commence in 2024, with a target completion date within the next 24 months. This agreement is expected to pave the way for enhanced economic cooperation and mutual growth between the GCC and Indonesia.
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