Links between the EU and Saudi Arabia

Special study of cooperation between the European Union and the GCC

Analytical approach to the links between the EU and Saudi Arabia

The study of the work of European External Action Service (EEAS) in Saudi Arabia is interesting because of the qualitative difference between the sources of wealth of both, By the geopolitical role of this second in the Middle East and for the cultural differences of these two interlocutors.

Saudi Arabia is one of the States with the largest oil reserves on the planet and its extraction is frankly profitable due to the good conditions of the land. It constitutes a international actor of reference in the Arab community and a military power.

EU contacts with Saudi Arabia through the EEAS are managed through two channels: EU-Saudi Arabia unilateral diplomacy y EU-Gulf Cooperation Council (GCC) multilateral diplomacy.

The second of these ways is the usual one for communication and frameworks of understanding between the EU and the Arab country, and for this reason we will give it special prominence in this article.

Introduction to the links between the EU and Saudi Arabia

Saudi Arabia is an important trading partner of the European Union and the data corroborates it: the GCC, whose matrix is ​​the country of the house of Saud, It is the fifth largest international market for the EU.

In 2015, exports to the CCEA Member States generated 111.600 billion euros, which represents approximately 14,7% of its global trade for the CCAG.

The international cooperation ties that link the EU with Saudi Arabia are relevant due to the financial effects that the oil sector has on the world economy. 

Within the framework of this cooperation, the EEAS ensures the protection of two central axes: the oil and military devices market.

When the EU looks at Saudi Arabia, it does so with a global perspective, as it also considers the GCC countries.

This international organization brings together the Persian Gulf State, whose economies depend on oil exports to a greater or lesser extent.

Its main objective is the legislative harmonization of its members to create a free trade space in their territories.

Saudi Arabia	Catar	Kuwait
Bahrain	United Arab Emirates	Oman

Thus, diplomatic relations between the EU and this group of countries are managed from two enclaves: the EU delegation in Riyadh (Saudi Arabia) and the EU delegation in Abu Dhabi (United Arab Emirates).

The first represents the Union before the country of destination and also before Bahrain, Oman and the GCC Secretariat, while the second accredits the EU only before the United Arab Emirates.

Negotiations between the GCC and the Union have been suspended intermittently since 1990, but were resumed in March 2002 and suspended again in 2008 by the GCC.

Despite this, the EU currently continues with its commitment to maintaining relevant diplomatic contacts, as evidenced by the opening of a delegation in Kuwait in July 2019.

Global analysis of the EU – Saudi Arabia cooperation agreement

The diplomacy and common objectives of the EU and the GCC are set out in a Cooperation Agreement of the year 1989.

The aforementioned Agreement establishes in its first article certain general objectives of multilateral cooperation and subsequently regulates issues of economic cooperation (art. 2-art. 10) and international trade (art. 11).

Finally, it dedicates a total of fourteen articles to develop the general and final clauses of the agreement (art. 12-art. 26).

The Joint Council

This Agreement creates a body called the "Joint Council" composed of representatives of the EU and the GCC.

Its function is to enhance the compliance with the objectives set by the agreement, not only those referred to in art. 1, but also those developed throughout the text.

To fulfill such entrusted task, the Joint Council is empowered to adopt resolutions, opinions or recommendations that will be received by the parties to the agreement.

The Joint Council is recognized with the power to adopt the necessary measures to achieve the assumed objectives. ergo The decisions of the Joint Council will be binding on the signatory parties.

This body will be advised by a Deputy Cooperation Committee (art. 15), without prejudice to the creation of other committees if necessary.

Inexcusably, the provision of different committees cooperating with each other seems to be an import of the nature of the great European institutions, supported by a very solid and complex administrative structure so that their work acquires the greatest possible coherence.

Given the nuclear nature of the Joint Council, it is not surprising that it is equipped with a presidency that organizes the execution and direction of the body.

The presidency of the Joint Council will be held alternately by the EU and the member countries of the GCC, taking into account the regulation of the Regulations of this Council as necessary.

Mutual denunciation and enforceability

The art. 16 provides for a kind of mutual complaint mechanism that authorizes each party to take an active role in the face of non-compliance by the other. This art. declares: 

If either Contracting Party considers that the other Contracting Party has breached an obligation under this Agreement, it may take appropriate measures.

Before doing so, it shall provide the Joint Council with all relevant information necessary for a thorough examination of the situation with a view to seeking a solution acceptable to the Contracting Parties.

In selecting measures, priority should be given to those that least disrupt the operation of this Agreement.

These measures will be notified to the Joint Council, which will consult on them if another Contracting Party so requests.

This provision establishes the executive nature of the law applicable to the Cooperation Agreement and the mediating role of the Joint Council.

Exchange of information

The art. 18 of the Agreement declares a economic cooperation, but also an exchange of information between the signatories when this is necessary.

Each party may request relevant information from the Joint Council regarding any agreement signed by the other party which, in its opinion, could have a "direct and specific" impact on the operation of this agreement.

Without a doubt this precept aims to achieve a Information flow to provide greater transparency to the multilateral relations derived from the Agreement.

The validity of this article on the duty of information might seem usual, due, or even necessary for an optimistic viability of any international agreement, however on this level it is striking.

Traditionally, the Public Administrations of some of the GCC member countries have developed a certain passive silence in the face of some requests for information from international actors.

This has sometimes made bilateral diplomatic relations difficult. Therefore, art. 18 represents a milestone in terms of transparency for these States and constitutes the presence of a European stamp in the text.

Impact of the Agreement on internal diplomatic relations of its Member States

This Cooperation Agreement has been signed by two international organizations, so The validity of the same binds the States party to each of them..

The text establishes a clause prohibiting discrimination.

This provision determines that no country that is part of the GCC nor its nationals or companies may be discriminated against in the agreements reached by the Council with the EU, and vice versa in relation to nationals and companies of the European Union with respect to the GCC. 

The main purpose of the CCEA is promote exchanges of goods and services between Member States through the creation of a free trade space.

For this reason it is natural that the agreements signed by this organization do not hinder the unilateral commercial and financial ties signed by each MS of the Council.

Thus, without prejudice to its text, The States parties to the EU and the GCC may undertake bilateral agreements with other subjects if they wish to do so.. Section 3 of art. 20 states: 

Subject to the provisions of Article 11, this Agreement and any action taken under it shall in no way affect the power of the GCC countries to undertake bilateral activities with other nations of the GCC. Arab league in the field of economic cooperation or to conclude, where appropriate, new economic cooperation agreements with these countries.

The express mention of the Arab league in the Agreement because despite having common objectives with the EU, this international organization does not require such deep integration from its Member States as the Union requests from its members.

Regarding conflict resolution, the art. 21 of this EU-CCEAG agreement provides for a mechanism to resolve possible disagreements that may arise between the parties., based on a conciliatory role of the Joint Council with the appointment of arbitrators if necessary.

Finally, the final precepts of the Cooperation Agreement create a framework for the future relations of the parties after the signing of the text.

Conclusions on the links between the EU and Saudi Arabia

• Conclusion I: The Cooperation Agreement between the EEC and the GCC signed in 1989 is the main legal instrument between the EU and the Council today.
• Conclusion II: The EU tries to do diplomacy from a global perspective. When the Union negotiates with Saudi Arabia it tends to do so from the multilateralism of the GCC and not from bilateral diplomacy.
• Conclusion III: Saudi Arabia is a central axis between the States of the Arabian Peninsula. He carries out an active religious, political and economic life in the region.
• Conclusion IV: The EU and Saudi Arabia maintain a very relevant strategic relationship. This link is not usually highlighted in international activity and news, but considerable synergies arise from it for both parties.