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GCC Federation of Chambers to Discuss Customs Unity

Foreign Ministers of the Gulf Cooperation Council (GCC) attend a meeting in Bayan Palace, in Kuwait City, Kuwait, December 4, 2017. REUTERS/Assad Hani
Foreign Ministers of the Gulf Cooperation Council (GCC) attend a meeting in Bayan Palace, in Kuwait City, Kuwait, December 4, 2017. REUTERS/Assad Hani
TT
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GCC Federation of Chambers to Discuss Customs Unity

Foreign Ministers of the Gulf Cooperation Council (GCC) attend a meeting in Bayan Palace, in Kuwait City, Kuwait, December 4, 2017. REUTERS/Assad Hani
Foreign Ministers of the Gulf Cooperation Council (GCC) attend a meeting in Bayan Palace, in Kuwait City, Kuwait, December 4, 2017. REUTERS/Assad Hani

Federation of Chambers of the Gulf Cooperation Council (GCC) will discuss next Thursday the completion of customs' unity requirements among the GCC countries, knowing that trade exchange has grown between the Gulf and the world to USD891.5 billion in 2016.

Abdul Rahim al-Naqi, Secretary General of the Federation of Chambers of GCC, stated that the federation is willing, in cooperation with Gulf Organization for Industrial Consulting (GOIC), to hold a workshop on the efforts exerted to complete customs' unity requirements among the GCC countries.

Naqi added, in his statement to Asharq Al-Awsat, that the workshop will discuss the journey and achievements of custom federation as well as outcomes and requirements for full completion, and the assessment of the current customs regime.

Leaders of the federation approved in Muscat Summit in December 2001 the new economic agreement which resulted in the foundation of the customs' unity among the GCC countries that became active in the first of January 2003 to go in tandem with the comprehensive work of Gulf work.

Customs' unity is a significant step to reach a joint Gulf market and to support the negotiating forces of GCC countries in order to get better conditions with commercial partners in fields of trade and investment, said Naqi. He added that the unity led to a 9.3 percent growth in foreign trade of the GCC countries with the world during 2001-2016, reaching USD891.5 billion in 2016 compared to USD234.2 billion in 2001.

This would boost the foreign trade contribution of the GCC to the total world trade, reaching 2.7 percent in 2016 against 1.9 percent in 2001. Further, exports of GCC would grow 8.2 percent during that period while imports would increase around 10.9 percent.

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Firm Dollar Keeps Pound, Euro and Yen Under Pressure

US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/ File Photo
US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/ File Photo
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Firm Dollar Keeps Pound, Euro and Yen Under Pressure

US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/ File Photo
US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/ File Photo

The US dollar charged ahead on Thursday, underpinned by rising Treasury yields, putting the yen, sterling and euro under pressure near multi-month lows amid the shifting threat of tariffs.

The focus for markets in 2025 has been on US President-elect Donald Trump's agenda as he steps back into the White House on Jan. 20, with analysts expecting his policies to both bolster growth and add to price pressures, according to Reuters.

CNN on Wednesday reported that Trump is considering declaring a national economic emergency to provide legal justification for a series of universal tariffs on allies and adversaries. On Monday, the Washington Post said Trump was looking at more nuanced tariffs, which he later denied.

Concerns that policies introduced by the Trump administration could reignite inflation has led bond yields higher, with the yield on the benchmark 10-year US Treasury note hitting 4.73% on Wednesday, its highest since April 25. It was at 4.6709% on Thursday.

"Trump's shifting narrative on tariffs has undoubtedly had an effect on USD. It seems this capriciousness is something markets will have to adapt to over the coming four years," said Kieran Williams, head of Asia FX at InTouch Capital Markets.

The bond market selloff has left the dollar standing tall and casting a shadow on the currency market.

Among the most affected was the pound, which was headed for its biggest three-day drop in nearly two years.

Sterling slid to $1.2239 on Thursday, its weakest since November 2023, even as British government bond yields hit multi-year highs.

Ordinarily, higher gilt yields would support the pound, but not in this case.

The sell-off in UK government bond markets resumed on Thursday, with 10-year and 30-year gilt yields jumping again in early trading, as confidence in Britain's fiscal outlook deteriorates.

"Such a simultaneous sell-off in currency and bonds is rather unusual for a G10 country," said Michael Pfister, FX analyst at Commerzbank.

"It seems to be the culmination of a development that began several months ago. The new Labour government's approval ratings are at record lows just a few months after the election, and business and consumer sentiment is severely depressed."

Sterling was last down about 0.69% at $1.2282.

The euro also eased, albeit less than the pound, to $1.0302, lurking close to the two-year low it hit last week as investors remain worried the single currency may fall to the key $1 mark this year due to tariff uncertainties.

The yen hovered near the key 160 per dollar mark that led to Tokyo intervening in the market last July, after it touched a near six-month low of 158.55 on Wednesday.

Though it strengthened a bit on the day and was last at 158.15 per dollar. That all left the dollar index, which measures the US currency against six other units, up 0.15% and at 109.18, just shy of the two-year high it touched last week.

Also in the mix were the Federal Reserve minutes of its December meeting, released on Wednesday, which showed the central bank flagged new inflation concerns and officials saw a rising risk the incoming administration's plans may slow economic growth and raise unemployment.

With US markets closed on Thursday, the spotlight will be on Friday's payrolls report as investors parse through data to gauge when the Fed will next cut rates.