European Union-Gulf Cooperation Council Trade and Sustainability Relations

Abstract

This chapter explores the potential of a trade and sustainability partnership between two regions: the European Union (EU) and the Gulf Cooperation Council (GCC). The chapter has eight sections. After the introductory section, Section 2 sets the scene. Section 3 provides an overview of the trade relations between the EU and the GCC countries. Section 4 explains the importance of diversifying both the GCC economy, so that the GCC can reduce dependence on crude oil and gas, and the EU economy, mainly through exportation. Section 5 analyzes the links between sustainability and international trade, and asks whether the impact of trade on sustainability is positive or negative. Section 6 specifically analyzes the impact of a potential free trade agreement between the EU and the GCC on the GCC’s climate change goals. Section 7 explores the potential of a renewable-energy trade agreement between the EU and the GCC. Finally, Section 8 provides an analysis of the key elements for a potential investment agreement between both regions.

Keywords: sustainability, renewable energy trade, circular economy, environmental protection, solar energy, tidal energy, wind farms

JEL Classification: K33, Q01, Q27, Q28, Q20, Q32, Q35, Q37, Q42, Q43, Q48, Q54, Q56