Riyadh, December 15, 2024 – In a significant move to strengthen economic relations between the Gulf Cooperation Council (GCC) and Japan, the first round of negotiations on a free trade agreement (FTA) concluded in Riyadh on December 12, 2024. The talks, held under the auspices of the General Authority of Foreign Trade (GAFT), were designed to lay the groundwork for future negotiations aimed at boosting bilateral trade, investment, and economic cooperation between the two regions.
The discussions, which involved key stakeholders from both sides, covered a broad spectrum of topics critical to shaping the future trade relationship. These included areas such as the exchange of goods, services, rules of origin, customs procedures, and general provisions. Special attention was given to emerging areas such as digital trade and intellectual property, reflecting the importance of adapting the agreement to the modern global economy. While the primary objective of this round was to establish the framework for subsequent negotiations, the positive tone and collaborative spirit of the talks were seen as a promising sign for deeper economic integration in the future.
At the helm of the Saudi negotiating team was Fareed Alasaly, Deputy Governor of International Organizations and Agreements at GAFT. He underscored the historic importance of the FTA talks and highlighted the potential benefits for both the GCC and Japan. According to Alasaly, the agreement holds immense promise to expand trade volumes, improve economic integration, and foster stronger ties across various sectors. He further emphasized that Japan is considered a vital market for GCC exports, particularly in sectors such as energy, technology, and infrastructure.
The Saudi government delegation included high-level representatives from a wide range of ministries and authorities, reflecting the breadth and depth of the economic interests involved in the negotiations. Among the key participants were representatives from the ministries of energy, investment, environment, water and agriculture, industry and mineral resources, economy and planning, and interior. Also part of the delegation were officials from the Saudi Authority for Intellectual Property, the Zakat, Tax and Customs Authority, the National Cybersecurity Authority, the Saudi Export Development Authority, and the Saudi Central Bank. The presence of these diverse institutions highlights the strategic importance of the FTA, with each entity bringing its expertise to ensure that the agreement aligns with Saudi Arabia’s broader economic vision.
Japan, with its advanced technological sector and strong industrial base, represents a crucial partner for the GCC, a region rich in energy resources and rapidly developing industries. The proposed FTA aims to unlock new opportunities for collaboration, especially in the fields of digital trade, energy, and innovation, offering both sides the potential for mutual growth. Moreover, the agreement is seen as an essential step in diversifying the GCC’s trade partners and reducing economic reliance on traditional markets, a key goal of the region's ongoing economic transformation.
As the first round of negotiations wraps up, the focus now shifts to the next phase of talks, which will aim to refine the details of the agreement and address any remaining issues. The successful conclusion of this round signals a promising future for trade relations between the GCC and Japan, with both parties eager to realize the full potential of this strategic partnership.
This FTA is also in line with Saudi Arabia’s broader ambitions under Vision 2030, which seeks to position the Kingdom as a global economic hub, not only within the region but also on the world stage. With both sides committed to advancing these negotiations, the GCC-Japan free trade agreement could be a key driver of economic growth and cooperation for years to come.