West Asia

(DP World)

In West Asia, trade and investment agreements have either been pushed by regional blocs or individual powers, such as Israel, Türkiye or the UAE. They primarily serve the interests of the region’s corporations and elites to the detriment of communities and the environment. Although resistance from social movements does exist, it has been less visible than in other regions due to the authoritarian nature of most of the region’s governments.

One of the oldest initiatives is the Greater Arab Free Trade Area or the Pan-Arab Free Trade Area (GAFTA) launched by the Arab League in 1978 and coming into force in 1998. Since 2005 the elimination of almost 100% tariffs on most agricultural and industrial goods among the GAFTA members was enforced. The 18 states that are members are: Algeria, Bahrain, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Morocco, Oman, Palestine, Qatar, Saudi Arabia, Sudan, Syria, Tunisia, the United Arab Emirates and Yemen. Comoros, Djibouti, Mauritania and Somalia are candidates for membership.

The Gulf Cooperation Council (GCC) includes Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, the United Arab Emirates, with Yemen participating only in limited GCC affiliated bodies. The GCC has dealt head-on with bilateral free trade agreements (FTA) at various levels. Some of its members, such as Bahrain and Saudi Arabia have signed bilateral treaties with foreign powers like the United States. As a group, the GCC has established FTAs in 2008 with Singapore and the European Free Trade Association (EFTA) and with Pakistan in 2023. The GCC is currently negotiating other FTAs with ASEAN, China, Japan, India, Indonesia, Malaysia, New Zealand, and the UK.

The GCC signed an Economic Cooperation Agreement with the European Union in 1988 and started negotiations on a bilateral free trade agreement in 1990. But those were dropped in 2008 due to the EU’s insistence on political demands, pushed by civil society groups, such as the International Federation for Human Rights. In the UK, civil society groups have criticised the GCC-UK deal under negotiation for ignoring human rights and climate issues.

As part of its strategy to diversify its economy parallel to fossil fuels and consolidate its geopolitical position, the United Arab Emirates (UAE) has pushed aggressively to forge bilateral trade deals, dubbed Comprehensive Economic Partnership Agreements (CEPAs), and investment treaties. It has signed 32 CEPAs with countries spread across different regions and active negotiations are underway. Already an established business and tourism hub, the UAE seeks to consolidate its status as a financial powerhouse and expand into sectors such as clean energy, technology and agribusiness. Food security is a critical geostrategic concern for the UAE, given its reliance on food imports. Through a tightly controlled network of ports and logistics platforms, and new CEPAs, the UAE aims to become a central hub in the global agri-food trading system, where corporations can import and re-export products across Asia, Africa and Europe quickly and duty-free.

In 2025, civil society mobilisation pressured members of the European Parliament to call for an end to negotiations on the EU-UAE trade deal, amid concerns about potential arms sales to the UAE-backed paramilitary force, the Rapid Support Forces (RSF), which has been accused of committing war crimes in Sudan.

Another GCC state pushing for trade deals is Saudi Arabia. In 2025 alone, it signed a trade agreement with South Sudan and investment treaties with Egypt, Syria and Uruguay. It also started negotiations for bilateral investment treaties with India and Hong Kong, as well as an FTA with Thailand. Meanwhile, Oman signed an FTA with the US in 2006 and another with India in 2025.

Iran only signed a free trade agreement with the Eurasian Economic Union (EAEU) in 2025, and maintains preferential trade agreements with Türkiye and Pakistan.

Israel has signed FTAs with countries or regional blocks such as: Canada, Colombia, Costa Rica, Guatemala, EFTA, the EU, Jordan, Mercosur, Mexico, Panama, South Korea, Türkiye, Ukraine, the UAE, UK, US and Vietnam. Negotiations are ongoing with Bahrain, China, India, Moldova, Serbia. It is also exploring possibilities with Australia, Japan and Thailand. Israel uses trade agreements to expand the sphere of influence of its transnational corporations, most of which have grown out of the illegal occupation of Palestine.

The Justice for Palestine European Citizens' Initiative called for the suspension of the EU-Israel Association Agreement in response to Israel’s numerous human rights abuses during the war in Gaza, as well as its breaches of multiple rules and obligations under international law. The campaign received one million signatures. Similar calls have been made by the European Trade Justice Coalition, European trade unions, and hundreds of civil society groups. Over the past couple of decades, social movements in other countries that have signed free trade deals with Israel have mobilised in solidarity with Palestine. Examples include actions in Canada, Costa Rica, India, Mercosur. A major victory for the movements was achieved in Colombia in 2025, when the country cancelled its FTA with Israel.

Türkiye has also developed a vast network of free trade agreements. It has FTAs in force with: Albania, Bosnia-Herzegovina, Chile, EFTA, Egypt, Faroe Islands, Georgia, Kosovo, Malaysia, Mauritius, Montenegro, Moldova, Morocco, North Macedonia, Palestine, Qatar, Serbia, Singapore, South Korea, Tunisia, the UAE, the UK, and Venezuela. FTAs with Lebanon, Sudan and Ukraine are under ratification, while negotiations are ongoing with the GCC, Indonesia and Japan.British and Turkish unions demanded in 2021 the suspension of the UK – Türkiye trade deal due to labour rights violations in Türkiye.

Last update: May 2026

Photo: DP World


No commitments to implementing the Arab Free Trade Agreement
The president of the Association of Lebanese Industrialists questions the fate of the Arab Free Trade Agreement ten years after its actual implementation.
Gulf lacks coordination on key issues in free trade talks
GCC countries need to have a strong coordinated stance in the free trade talks with the European Union, top Arab officials demanded on Sunday. "The Europeans get the lion's share out of any deal they break in the GCC, while we incur the losses and burdens," said Abdullah Bin Hamad Al Attiyah, the Qatari Deputy Prime Minister and Minister of Energy and Industry.
Yemen to join GCC, Gulf-EU Free Trade Agreement to be signed
Yemen will soon become a regular member of the GCC, following the GCC leaders' agreement to a request by Saudi King Abdallah. In addition, a GCC-EU free trade agreement is expected to be signed during 2008.
US puts UAE free trade deal on ice
Negotiations for a free trade agreement between the US and the UAE will not be resumed under the current US administration, according to the US Trade Representative office
US benefits most from free trade pact with Bahrain
The US-Bahrain Free Trade Agreement (FTA) has proven to be beneficial to the American side. The deal came into effect at the start of August 2006. Available statistics indicate that American exports have increased a hefty 28 per cent during the first year of FTA's implementation. Bahrain's exports dropped by 10 per cent in the same period.
Israel signs free-trade accord with South American bloc
Mercosur, the South American trade bloc (Argentina, Brazil, Paraguay and Uruguay), signed a free-trade agreement with Israel on Tuesday, its first pact with a country outside of Latin America.
FTA poses challenges for Bahraini working women
Working women in Bahrain are facing many challenges and female activists predict more hardship to come in their way after the full implementation of the Free Trade Agreement between Bahrain and the United States.
Israeli, Palestinian businessmen urge trade talks
Key members of the Israeli and Palestinian private sectors recommended in a joint study that peace negotiators adopt a "Free Trade Agreement Plus" (FTA Plus) as the basis for economic relations between Israel and any future Palestinian state.
Holy See and Israel close to bilateral agreement, says Israeli ambassador
The agreement deals with economic issues, as well as with the legal and financial status of Church properties in the Holy Land.
EU, GCC fail to end free trade obstacles
The Gulf Cooperation Council and 25-member European Union failed on Sunday to overcome obstacles to a free trade agreement that has eluded them for nearly 20 years, the Qatari finance minister said.