Free trade is crucial for economic prosperity, job creation, and industry competitiveness. The GCC region, as a global trade hub, heavily relies on oil derivatives and raw material exports. 

Free trade is crucial for economic prosperity, job creation, and industry competitiveness. The GCC region, as a global trade hub, heavily relies on oil derivatives and raw material exports. The chemical industry plays a vital role, with a trade flow value of $88.6 billion in 2021, contributing to a trade surplus of $53.7 billion. This growth translates into 210,200 jobs in the region. To further enhance the chemical industry’s international trade position, policymakers must prioritize free trade agreements and preferential trade deals. These agreements have the potential to raise living standards, attract foreign investment, foster innovation, and create sustainable industries. Free trade deals reduce barriers, promote intellectual property rights protection, and enable businesses to optimize resources. While FTAs may reduce government revenues, they offer access to new markets, enhancing exports and generating higher revenue for chemical firms. The GCC’s trade relationships with China, India, and Turkey hold promising opportunities. Evaluating potential economic impacts and enhancing understanding through white papers can guide policymakers in FTA negotiations. As global chemical demand continues to rise, the GCC chemical industry has the potential to provide essential products to a growing population. To achieve this, a robust trade policy framework that addresses trade opportunities and risks is essential. Collaboration is crucial in this new era of trade to ensure progress and prosperity for the chemical industry and the region.

Source: Arab News