Tapioca 'Fuel' Push for Gulf
July 1, 2009
Manama, Bahrain
Asian countries are marketing their tapioca, sugarcane and palm oil as alternative fuel sources for the Gulf, it has emerged.
Thailand Foreign Affairs Minister and Association of Southeast Asia Nations (Asean) chairman Kasit Piromya said the products were already being turned into energy in his country.
He said this was one of many potential investment opportunities in the petrochemical and renewable and alternative energy industries.
"Thailand can produce agricultural products, but also tapioca, sugarcane and palm oil could be turned into energy and the GCC could invest in this," said Mr Piromya.
"We have many rivers and in Lao they are already building dams for hydropower and the GCC could invest in this."
Mr Piromya was speaking at a Press conference after the signing of a GCC-Asean Memorandum of Understanding (MoU) following the First GCC-Asean Ministerial Meeting, held at the Ritz-Carlton Bahrain Hotel and Spa.
A GCC-Asean Free Trade Agreement (FTA) will now be studied by secretariats from both regions, which will also make recommendations on future economic, culture, education and information co-operation and development.
"The FTA goes beyond its economic and commercial benefits, significant though they will be - it will also be a public endorsement by the two sides of their partnership and friendship at all levels and a statement of their intent to further strengthen and develop their ties," Foreign Minister Shaikh Khalid bin Ahmed Al Khalifa said at the meeting.
"I believe that the time is therefore right for us to move forward, collectively and to initiate the necessary steps towards the conclusion of a FTA.
"And at this time of international financial crisis, I have no doubt that it is by working together that we can best confront and overcome the economic and financial challenges ahead of us all and successfully mitigate their consequences for all our countries."
Shaikh Khalid said the GCC was still working on a FTA with the European Union and although negotiations were pending consultations were ongoing and there were plans for the GCC Ministerial Cabinet to speak to the EU Commission.
In addition to the MoU, the ministers adopted a joint vision that was expected to provide a solid basis for developing mutually beneficial relations between the two regions.
It was agreed by the GCC and Asean ministers that a working group would be established to form a comprehensive agreement and framework for co-operation in energy, food security, transportation, commercial relations, public and private sector collaboration and other fields.
It was decided that after the 2010 meeting, ministerial meetings would be held every two years and be hosted alternately by a GCC or Asean country.
An open-ended meeting will be held once a year on the margins of the UN General Assembly.
Ministers agreed at the meeting on the importance of food security and development of joint ventures in agricultural productivity, supply and food standards, including Halal food products, through greater investment, improvement on infrastructure and logistics, as well as research and development.
Mr Piromya said at the Press conference that Thailand could supply the GCC with the food it needed for the next 10 years.
He said Thailand and Vietnam exported about 24 billion tonnes of rice worldwide and about 40 million to the GCC.
Mr Piromya also said the private sector was instrumental for the success of the economic co-operation of both regions.
"We are fully dependent on the role of the private sector, so we must let them to get in contact with one another and this is already being done," he said.
GCC Secretary-General Abdulrahman Al Attiyah emphasised that the role and participation of the private sector was of great priority with regards economic, cultural and educational co-operation.
"Working on an action plan and FTA will strengthen our business opportunities," he added.
Other items discussed in the meeting included the constructive roles of both sides in the promotion of peace, stability, prosperity, regional integration, sustainable development and community building.
Ministers underscored the importance of combating piracy in the Arabian Sea and expressed concern about the current financial crisis.
They also stressed the importance of improving co-operation between international financial, economic and trading organisations and groupings.
The potential of the tourism industry, including the medical sector was noted at the meeting.
Ministers identified that human capital development was essential in narrowing the development gap.
Source: Gulf Daily News For more information, please contact the Office of the Economic Representative via e-mail info@bahraingateway.org or by telephone at (202) 537-7810.
