Jakarta. ASEAN has kept a tariff-slashing deal with the Gulf Cooperation Council (GCC) on its wish list, as the Southeast Asian grouping assesses whether such a pact is practical.  

The GCC alliance comprises Saudi Arabia, Kuwait, the United Arab Emirates, Qatar, Bahrain, and Oman, whose combined gross domestic product (GDP) hits $2.4 trillion. 

Arab foreign ministers and ASEAN counterparts recently sat together to review the idea of having a trade deal in place when they met in the UN New York debate. Such treaties typically aim to lower tariffs on members' goods down to zero percent, although the details hinge on the talks.

The two clubs have not begun the formal negotiations. Discussions also remain at a feasibility study stage, according to an ASEAN statement posted after the New York meeting.

“The meeting noted the ongoing work to advance discussions on ASEAN’s feasibility study for the ASEAN-GCC Free Trade Agreement, targeted for completion by end-2026,” the document reads.

They also want the upcoming pact to create an “enabling and favorable environment” for mutually beneficial investments. 

When the blocs’ leaders gathered in Kuala Lumpur last year, President Prabowo Subianto pointed out how ASEAN’s trade with the GCC still had ample room for growth. Indonesia — also the world’s largest Muslim-majority country — wants ASEAN and Gulf economies to recognize each other’s halal certificates for easier market entry.

A joint declaration released at the time showed ASEAN-GCC trade totaled $130.7 billion in 2023. GCC nations had invested around $390.2 million in ASEAN over the said period. The groups forecast a 30% average growth in export-import numbers and expressed openness to the trade deal.

Foreign direct investment from the Gulf nations into ASEAN reached $390.2 million.

The GCC aims to catapult the annual trade figure to $180 billion by 2032.

GCC nations are predominantly oil exporters. Indonesia, however, has been trying to lessen its Middle Eastern crude imports following supply constraints due to the Iran war.

Jakarta is negotiating its very own trade deal with the GCC, even seeking to wrap up the talks no later than November. Indonesia is expecting an up to 17.4% hike to export numbers if everything goes well. Southeast Asia's biggest economy registed a $15.45 billion trade between January and November 2025.

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