As both the economic blocs have sorted out their 90 per cent contentious issues relating to trade and economics, a top official said.

The negotiations for a free trade hit snags, last year when the European Union insisted on the politico-economic conditions including cent per cent ownership of property and businesses, besides other matters of political significance.

Mohammed A. Al Haif, Director of the Customs Union Department at the office of Secretary General of the Arab Gulf Cooperation Council or AGCC, in an interview with Khaleej Times said that the issue of export duties would feature prominent in the next round of talks.

Al Haif said that the Finance Minsters from the GCC bloc would meet in Doha next week to prepare the agenda for the GCC Summit, which would take place in Kuwait in January next, to review among other matters, the progress made by the GCC customs Union, which was formed in 2002.

The Arabian Gulf leaders are eager on removing existing barriers to the free float of goods to boosting the trade and commerce.

The GCC Heads of state would also decide on the removal of all custom check posts from the seven member nations, to allow custom duty free movement of goods between the member states, without producing any documents on the borders, he said.

This year, the bloc has successfully added more than 125 items to its list now seen at 959 -items that can be imported across GCC without paying any customs duty lifting significantly the trade exchanges. The new items added recently to the list include computers, mobile phones, books and newspapers, foodstuff and tens of other articles commonly traded.

Already the GCC Customs Union has made great strides in seven years of its formation as the inter-GCC trade exchanges has grown by 21 per cent on an average annually since its inception, which was one of the chief objective.

On the delay in the introduction of the Value Added Tax or VAT, Al Haif said that some members have presented fresh proposals on the new tax regime, which would replace the five per cent customs duties currently imposed on imports across the region.

‘There are no reservations from any member on the new tax system,’ he clarified.

VAT would not have a flat rate, in fact it could vary on item –to- item, Al Haif said.

The issues of GCC Customs Union get priority by the regional leaders that’s why many obstacles have been successfully removed, said Hamad Al Awadhi, a director on the board of Abu Dhabi Chamber of Commerce and Industry or ADCCI.

Al Awadhi, who chairs the standing committee on customs at the trade body said though much has been achieved by the Arabian Gulf in the sphere of customs, yet issues relating to duplication of tariffs, Certificates of Origin and cost of clearing goods need to be tackled to boost trade and lift the remaining trade barriers.