Gulf summit opens: Saudi Arabia insists on solution to row over US trade deals

Leaders of oil-rich Gulf Arab states began a summit Monday, with Saudi Arabia refusing to discuss economic integration unless a solution is found to a row over free trade pacts with the United States. The summit was opened by Bahrain's King Hamad in the absence of Saudi Crown Prince and de facto ruler Abdullah bin Abdul Aziz, who is boycotting the two-day gathering.
"The Saudi delegation has demanded the removal of any items relating to (Gulf) economic co-operation from the agenda unless Bahrain's free trade deal with Washington is discussed and a solution is found," a Gulf source told AFP, requesting anonymity.
The dispute over Manama's free trade deal with Washington, which other members of the Gulf Co-operation Council (GCC) are seeking to match, has prompted Crown Prince Abdullah to stay away. Defence Minister Prince Sultan bin Abdul Aziz is heading the kingdom's delegation to the summit instead.
The GCC groups Kuwait, Oman, Qatar and the United Arab Emirates, in addition to Saudi Arabia and summit host Bahrain.
"Our message to the world is one of openness, peace and a constructive partnership," the Bahraini monarch told the brief opening session before the leaders met behind closed doors.
The region's peoples aspire to "more cohesion and complementarity" in the economic and security domains, King Hamad said, adding that GCC monarchies were pressing ahead with "gradual modernisation of their own will."
GCC Secretary General Abdulrahman al-Attiyah told AFP that the row over the Bahrain-US deal was not on the summit's formal agenda, but could be raised by the leaders in side meetings.
The Gulf source who spoke anonymously said Saudi Arabia had told its partners there is no point having a GCC customs union if one member state gives customs exemptions to other countries on a bilateral basis.
Riyadh is threatening to re-impose customs tariffs on foreign goods coming from GCC states that sign other free trade pacts, said the source.
There is concern that the dispute over the free trade accords could jeopardise the Gulf states' fledgling customs union launched in January 2003.
The Gulf monarchies also plan to establish a monetary union in 2005, a common market in 2007 and a single currency by the start of 2010.
UAE President Sheikh Khalifa bin Zayed al-Nahayan is attending his first GCC summit as ruler since succeeding his late father last month.
Other Gulf leaders participating in the gathering are Qatari Emir Sheikh Hamad bin Khalifa al-Thani, Sultan Qaboos of Oman and Kuwaiti Prime Minister Sheikh Sabah al-Ahmad al-Sabah.