*Qatar has made "substantial multibillion" euro investment in the European Union
Qatar has made "substantial multibillion" euro investment in the European Union (EU) and its economic relations with it stands out in bilateral co-operation. The EU is also exploring options to restart the negotiations for the free trade agreement (FTA) with the Gulf Co-operation Council (GCC).
"We are increasingly considering Qatar as a strategic partner. We have a two-pronged approach to engage with Qatar. One through the GCC and also bilaterally," Michele Cervone d'Urso, ambassador, head of delegation, EU Delegation to Saudi Arabia, Bahrain, Kuwait, Oman and Qatar, told reporters in Doha.
Qatar plays a lead role and is the only Gulf country in the European Economic Network, which established business-to-business partnerships with the private sector, he highlighted.
The EU was among the principal destination of Qatar's exports and the origin of Qatar's imports, representing 10.1% and 25.9% respectively during the fourth quarter (Q4) of 2017. During Q4, 2017, the foreign merchandise trade balance with the EU showed a deficit of QR1.5bn, while total trade amounted to QR15.4bn.
Within the EU, the UK was the major destination during Q4 2017, reporting exports of QR1.5bn (2.1% of total), followed by Italy QR1.3bn (1.9%) and the Netherlands QR1bn (1.4%). Imports from Germany were at the top with QR2bn (6.2% of total), followed by Italy QR1.3bn (4.1%) and the UK QR1.3bn (4%).
Exports to the EU were mainly LNG, polyethylene, halogenated olefins, helium, aluminium alloys and urea; while imports included principally vehicles, parts of airplanes or helicopters, medical solutions, parts for turbo jets or turbo propellers, jewellery of platinum and iron ores.
Highlighting that Qatar is a major investor in the EU with multibillion euros investments; d’Urso said "we are trying to see how we can incentivise more in enhancing this level. The potential is far more."
On the FTA talks, which started in 1990 but effectively halted in 2008, he said efforts are on to assess whether the GCC will be interested in coming back to the negotiation table.
"We are trying to negotiate a common framework," the EU official said.
The FTA is foreseen to provide for a progressive and reciprocal liberalisation of trade in goods and services. The framework for economic and political co-operation between the EU and the GCC countries is provided by the 1988 EU-GCC cooperation agreement that seeks to improve trade relations and stability in a strategic part of Europe's neighbourhood.
In May last year, the EU and GCC launched a dedicated dialogue on trade and investment issues, which provides a platform to tackle trade and investment related issues and enhance cooperation on matters of mutual interest.
