RESTRICTED
WORLD TRADE WT/ACC/SAU/6/Add.21
1October 1996
ORGANIZATION(96-3906)
Original: English
WORKING PARTY ONTHE ACCESSION OFSAUDI ARABIA
Questions andReplies
Addendum
ThePermanent Mission oftheKingdom ofSaudi Arabia hassubmitted theUnified Economic
Agreement oftheCooperation Council fortheArab States oftheGulfreproduced hereunder.
_______________
THE UNIFIED ECONOMIC AGREEMENT
BETWEEN THE
COUNTRIES OFTHE GULF COOPERATION
COUNCIL
With thehelpofGodtheAlmighty;
TheGovernments oftheMember States oftheArab GulfCooperation Council;
Inaccordance withtheCharter thereof, which callsforcloser relations andstronger links;
and,desiring todevelop extend andenhance theireconomic tiesonsolidfoundations, inthebestinterest
oftheirpeoples andforthesakeofworking tocoordinate andstandardize theireconomic, financial
andmonetary policies, aswellastheircommercial andindustrial legislation, andCustoms regulations
haveagreed asfollows:
1English onlyWT/ACC/SAU/6/Add.2
Page2
CHAPTER ONE
TRADE EXCHANGE
ARTICLE 1
a. TheMemberStatesshallpermittheimportationandexportationofagricultural,animal,industrial
andnatural resource products thatareofnational origin. Also, theyshallpermit exportation thereof
toother Member States.
b. Allagricultural, animal, industrial andnatural resource products thatarefromMember States
shallreceive thesame treatment asnational products.
ARTICLE 2
1. Allagricultural, animal, industrial andnatural resource products thatareofnational origin
shallbeexempted from reciprocal charges.
2. Fees charged forspecific services such asdemurrage, storage, transportation, freight or
unloading, shallnotbeconsidered ascustoms duties when theyarelevied ondomestic products.
ARTICLE 3
1. Forproducts ofnational origin toqualify asnational manufactured products, thevalue added
ensuing from theirproduction inMember States shallnotbelessthan40%oftheirfinalvalue asat
thetermination oftheproduction phase. Inaddition Member States citizens 'share intheownership
oftheproducing plant shallnotbelessthan51%.
2. Every itemenjoying exemption hereby shallbeaccompanied byacertificate oforigin duly
authenticated bytheappropriate government agency concerned.
ARTICLE 4
1. Member States shallestablish auniform minimum Customs tariff applicable totheproducts
ofcountries other thanG.C.C. Member States.
2. Oneoftheobjectives oftheuniform Customs tariffshallbetheprotection ofnational products
from foreign competition.
3. Theuniform Customs tariff shallbeimplemented gradually within fiveyears from thedate
onwhich thisagreement becomes effective. Arrangements foritsgradual implementation shallbe
agreed upon within oneyearfrom thesaiddate.
ARTICLE 5
Member States shallgrant allfacilities forthetransit ofanyMember State'sgoods toother
MemberStates,exemptingthemfromalldutiesandtaxeswhatsoever,withoutprejudicetotheprovisions
ofParagraph 2ofArticle 2.
ARTICLE 6
Transit shallbedenied toanygoods thatarebarred fromentry intotheterritory ofaMember
Statebyitslocalregulations. Listsofsuchgoods shallbeexchanged between theCustoms authorities
oftheMember States.WT/ACC/SAU/6/Add.2
Page3
ARTICLE 7
Member States shallcoordinate theircommercial policies andrelations withother states and
regional economic groupings andblocs withaviewtocreating balanced trade relations andequitable
circumstances andterms oftrade therewith.
Toachieve thisgoal, theMember States shallmake thefollowing arrangements:
1. Coordination ofimport/export policies andregulations.
2. Coordination ofpolicies forbuilding upstrategic foodstocks.
3. Conclusion ofcollective economic agreements incases where jointbenefits toMember States
would berealized.
4. Taking ofaction forthecreation ofcollective negotiating power tostrengthen theirnegotiating
position vis-a-vis foreign parties inthefieldofimportation ofbasic needs andexportation of
major products.
CHAPTER TWO
THE MOVEMENT OFCAPITAL AND INDIVIDUALS
AND THE EXERCISE OFECONOMIC ACTIVITIES
ARTICLE 8
TheMember States shallagree onexecutive principles toensure thateachMember Stateshall
grant thecitizens ofallother Member States thesametreatment asisgranted toitsowncitizens without
anydiscrimination ofdifferentiation inthefollowing fields:
1. Freedom ofmovement, work andresidence.
2. Right ofownership, inheritance andbequest.
3. Freedom ofexercising economic activity.
4. Freemovement ofcapital.
ARTICLE 9
TheMember States shallencourage theirrespective private sectors toestablish jointventures
inorder tolinktheircitizens 'economic interests invarious spheres ofactivity.
CHAPTER THREE
COORDINATION OFDEVELOPMENT
ARTICLE 10
TheMember States shallendeavour toachieve thecoordination andharmonization oftheir
respective development plans withaviewtoachieving integration ineconomic affairs.
ARTICLE 11
1. TheMember States shallendeavour tocoordinate theirpolicies withregard toallaspects of
theoilindustry including extraction, refining, marketing, processing, pricing, theexploitation ofnatural
gas,anddevelopment ofenergy sources.WT/ACC/SAU/6/Add.2
Page4
2. TheMemberStatesshallendeavourtoformulateunifiedoilpoliciesandadoptcommonpositions
vis-a-vis theoutside world, andininternational andspecialized organizations.
ARTICLE 12
Toachieve the'objectives specified inthisAgreement, theMember States shall:
1. Coordinate industrial activities, formulate policies andmechanisms which willleadtoindustrial
development andthediversification oftheirproducts onanintegrated basis.
2. Standardize theirindustrial legislation andregulations andguide theirlocalproduction units
tomeettheirneeds.
3. Allocate industries between Member States according torelative advantages andeconomic
feasibility, andencourage theestablishment ofbasic aswellasancillary industries.
ARTICLE 13
Within theframework oftheircoordinating activities, theMember States shallpayspecial
attention totheestablishment ofjointventures inthefields ofindustry, agriculture andservices, and
shallsupport them withpublic, private ormixed capital inorder toachieve economic integration,
productive interface, andcommon development onsound economic bases.
CHAPTER FOUR
TECHNICAL COOPERATION
ARTICLE 14
Themember States shallcollaborate infinding spheres forcommon technical cooperation aimed
atbuilding agenuine localbasefounded onencouragement andsupport ofresearch andapplied sciences
andtechnology aswellasadapting imported technology tomeettheneeds oftheregion andtoachieve
theobjectives ofprogress anddevelopment.
ARTICLE 15
MemberStatesshallestablishprocedures,makearrangementandlaydowntermsforthetransfer
oftechnology, selecting themost suitable orintroducing suchchanges thereto aswould serve their
various needs. Member States shallalso,whenever feasible, conclude uniform agreements withforeign
governments andscientific orcommercial organizations toachieve these objectives.
ARTICLE 16
Member States shallformulate policies andimplement coordinated programs fortechnical,
vocational andprofessional training andqualification atalllevels andstages, They shallalsodevelop
educational curricula atalllevels tolinkeducation andtechnology withthedevelopment needs ofthe
Member States.
ARTICLE 17
Member States shall coordinate their manpower policies andshall formulate uniform and
standardized criteria andclassifications forthevarious categories ofoccupations andcrafts indifferent
sectors inorder toavoid harmful competition among themselves andtooptimize theutilization of
available human resources.WT/ACC/SAU/6/Add.2
Page5
CHAPTER FIVE
TRANSPORT AND COMMUNICATIONS
ARTICLE 18
Member States shallaccord passenger andcargo transportation belonging tocitizens ofthe
other Member States, when transitting orentering itsterritory, thesame treatment theyaccord tothe
means ofpassenger andcargo transportation belonging totheirowncitizens, including exemption from
allduties andtaxes whatsoever. However, localmeans oftransportation areexcluded.
ARTICLE 19
1. Member States shallcooperate inthefields oflandandseatransportation, andcommunications.
They shallalsocoordinate andestablish infrastructure projects suchasseaports, airports, water and
power stations androads, withaviewtorealizing jointeconomic development andthelinking oftheir
economic activities witheachother.
2. Thecontractingstatesshallcoordinateaviationandairtransportpoliciesamongthemandpromote
allareas ofjointaction atvarious levels.
ARTICLE 20
MemberStatesshallallowsteamers,shipsandboatsandtheircargoes,belongingtoanyMember
Statefreely tousethevarious portfacilities andgrant themthesame treatment andprivileges granted
totheirownindocking orcalling attheports asconcerns fees,pilotage anddocking services, freight,
loading andunloading, maintenance, repair, storage ofgoods andother similar services.
CHAPTER SIX
FINANCIAL AND MONETARY COOPERATION
ARTICLE 21
Member States shallseektounify investment rulesandregulations inorder toachieve ajoint
investmentpolicyaimedatdirectingtheirdomesticandforeigninvestmentstowardsservingtheirinterest,
andrealising theirpeoples 'aspirations fordevelopment andprogress.
ARTICLE 22
MemberStatesshallseektocoordinatetheirfinancial,monetaryandbankingpoliciesandenhance
cooperation between monetary agencies andcentral banks, including theendeavour toestablish ajoint
currency inorder tofurther theirdesired economic
ARTICLE 23
Member States shallseektocoordinate theirexternal policies inthesphere ofinternational
andregional development aid.WT/ACC/SAU/6/Add.2
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CHAPTER SEVEN
CLOSING PROVISIONS
ARTICLE 24
Intheexecution oftheAgreement anddetermination oftheprocedures resulting therefrom,
consideration shallbegiven todifferences inthelevels ofdevelopment asbetween Member States and
thelocal development priorities ofeach. AnyMember States maybetemporarily exempted from
applying suchprovisions ofthisAgreement asmaybenecessitated bytemporary localsituations in
thatstateorspecific circumstances faced byit.Such exemption shallbeforaspecified period and
shallbedecided bytheSupreme Council oftheCooperation Council oftheArab States oftheGulf.
ARTICLE 25
NoMember Stateshallgrant anynon-member stateanypreferential privilege exceeding that
granted herein.
ARTICLE 26
a. ThisAgreement shallenterintoforce fourmonths afteritsapproval bytheSupreme Council.
b. ThisAgreement maybeamended byconsent oftheSupreme Council.
ARTICLE 27
Incaseofconflict withlocallawsandregulations ofMember States, execution oftheprovisions
ofthisAgreement shallprevail.
ARTICLE 28
Provisions herein shallsupersede anysimilar provisions contained inbilateral agreements.
Drawn upatRiyadh on15Muharram 1402, corresponding to11November 1982.