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First Round of Free Trade Negotiations between Gulf States, Türkiye Begins in Ankara

The signing of the joint statement to begin negotiations on a free trade agreement between the GCC and Türkiye in March (Asharq Al-Awsat)
The signing of the joint statement to begin negotiations on a free trade agreement between the GCC and Türkiye in March (Asharq Al-Awsat)
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First Round of Free Trade Negotiations between Gulf States, Türkiye Begins in Ankara

The signing of the joint statement to begin negotiations on a free trade agreement between the GCC and Türkiye in March (Asharq Al-Awsat)
The signing of the joint statement to begin negotiations on a free trade agreement between the GCC and Türkiye in March (Asharq Al-Awsat)

Ankara is set to host on Monday the first round of negotiations for a free trade agreement between the Arab Gulf Cooperation Council and Türkiye.

The talks will extend over three days, with the participation of nine Saudi government agencies, and will focus on a number of topics related to trade in goods and services, investment, technical barriers to trade, and sanitary and phytosanitary measures.

Conferees are set to exchange information and data, discuss challenges and trade opportunities between the concerned parties, and build trust and partnership by identifying areas of cooperation and joint coordination, with the aim of reaching a final comprehensive agreement.

The Saudi government delegation, which is headed by the General Authority for Foreign Trade, includes the Ministries of Energy, Investment, Environment, Water, Agriculture, Industry and Mineral Resources, the Ministry of Economy and Planning, the Food and Drug General Authority, the Zakat, Tax and Customs Authority, the Saudi Standards, Metrology and Quality Authority, and the Export Development Authority.

The agreement, when implemented, will give a preferential advantage for the entry of national goods and services into the markets of all concerned parties, in addition to facilitating, encouraging and protecting investments, raising the volume of trade exchange and promoting economic growth and development in the member countries.

The GCC Secretary-General, Jassim Mohammed Al-Budaiwi, and the Turkish Minister of Trade, Omer Bolat, signed on March 21 a joint statement to launch the negotiations for a free trade agreement in Ankara, highlighting the two sides’ endeavor to develop their strategic partnership.

In a speech during the signing ceremony, Bolat said he was confident of the success of the talks.

He noted that the negotiations between his country and the GCC began in 2005, but were suspended in 2010, stressing that the bilateral economic relations will be more comprehensive and well-defined, and will offer opportunities for development and diversification.

Bolat added that Türkiye attached great importance to a comprehensive deal that regulates important areas such as trade in goods and services, intellectual property rights and customs procedures, as well as facilitating trade and developing cooperation between small and medium-sized companies.

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Trump Exempts Mexico Goods from Tariffs for a Month, but Doesn’t Mention Canada

Construction workers are seen on the site of a new development in Long Beach, California, March 5, 2025. (AFP)
Construction workers are seen on the site of a new development in Long Beach, California, March 5, 2025. (AFP)
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Trump Exempts Mexico Goods from Tariffs for a Month, but Doesn’t Mention Canada

Construction workers are seen on the site of a new development in Long Beach, California, March 5, 2025. (AFP)
Construction workers are seen on the site of a new development in Long Beach, California, March 5, 2025. (AFP)

US President Donald Trump on Thursday said Mexico won't be required to pay tariffs on any goods that fall under the United States-Mexico-Canada Agreement on trade until April 2, but made no mention of a reprieve for Canada despite his Commerce secretary saying a comparable exemption was likely.

"After speaking with President Claudia Sheinbaum of Mexico, I have agreed that Mexico will not be required to pay Tariffs on anything that falls under the USMCA Agreement," Trump wrote on Truth Social. "This Agreement is until April 2nd."

Earlier on Thursday, US Commerce Secretary Howard Lutnick said the one-month reprieve on hefty tariffs on goods imported from Mexico and Canada that has been granted to automotive products is likely to be extended to all products that comply with the US-Mexico-Canada Agreement on trade.

Lutnick told CNBC he expected Trump to announce that extension on Thursday, a day after exempting automotive goods from the 25% tariffs he slapped on imports from Canada and Mexico earlier in the week.

Trump "is going to decide this today," Lutnick said, adding "it's likely that it will cover all USMCA-compliant goods and services."

"So if you think about it this way, if you lived under Donald Trump's US-Mexico-Canada agreement, you will get a reprieve from these tariffs now. If you chose to go outside of that, you did so at your own risk, and today is when that reckoning comes," he said.

Nonetheless, Trump's social media post made no mention of a reprieve for Canada, the other party to the USMCA deal that Trump negotiated during his first term as president.

Lutnick said his "off the cuff" estimate was that more than 50% of the goods imported from the two US neighbors - also its largest two trading partners - were compliant with the USMCA deal that Trump negotiated during his first term as president.

Canadian Prime Minister Justin Trudeau called Lutnick's comments "promising" in remarks to reporters in Canada.

"That aligns with some of the conversations that we have been having with administration officials, but I'm going to wait for an official agreement to talk about Canadian response and look at the details of it," Trudeau said. "But it is a promising sign. But I will highlight that it means that the tariffs remain in place, and therefore our response will remain in place."

Lutnick emphasized that the reprieve would only last until April 2, when he said the administration plans to move ahead with reciprocal tariffs under which the US will impose levies that match those imposed by trading partners.

In the meantime, he said, the current hiatus is about getting fentanyl deaths down, which is the initial justification Trump used for the tariffs on Mexico and Canada and levies on Chinese goods that have now risen to 20%.

"On April 2, we're going to move with the reciprocal tariffs, and hopefully Mexico and Canada will have done a good enough job on fentanyl that this part of the conversation will be off the table, and we'll move just to the reciprocal tariff conversation," Lutnick said. "But if they haven't, this will stay on."

Indeed, Trudeau is expecting the US and Canada to remain in a trade war.

"I can confirm that we will continue to be in a trade war that was launched by the United States for the foreseeable future," he told reporters in Ottawa.