Applicability of the theory of customs unions to the case of the cooperation council for the Arab States of the Gulf (The GCC)

Thesis/Dissertation · Tue Jan 01 04:00:00 EST 1985

OSTI ID:6129624

As-Sudais, A A.S.

In 1981, six Arab Gulf states formed the Gulf Cooperation Council (GCC). These states are Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates (UAE). One of the main stated objectives of the GCC is regional economic integration. This objective was expressed in the GCC Unified Economic Agreement which called for gradual creation of the GCC common market and cooperation and coordination in all economic fields at all levels. The GCC has chosen to approach economic integration in a gradual manner. The first step taken was the formation of a customs union. This study investigates the applicability of the theory of customs unions to this particular group at this time. The economies of the GCC members exhibit similar characteristics such as reliance on the export of a single nonrenewable commodity (oil), similar large-scale industrial projects (mainly petrochemicals), lack of complementarity of economic resource endowment, and little diversity in industrial production. The main conclusion of the study is that the possible gains suggested by the theory of customs unions are not expected to be realized to a significant extent as a result of forming the GCC customs union. Trade effects (if any) will be negligible due to various factors including low-pre-union tariff levels.

• Research Organization: Colorado Univ., Boulder (USA)
• OSTI ID: 6129624
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290200* -- Energy Planning & Policy-- Economics & Sociology
294002 -- Energy Planning & Policy-- Petroleum
ARABIAN SEA
COOPERATION
ECONOMIC POLICY
GOVERNMENT POLICIES
INDIAN OCEAN
OIL-EXPORTING COUNTRIES
PERSIAN GULF
PETROLEUM PRODUCTS
REGIONAL COOPERATION
SEAS
SURFACE WATERS
TRADE