Economic Integration & Trade Policy: Kuwait

The Gulf Cooperation Council (GGC), formed in 1981, is the founding step towards recognising the benefits of formal, regional trade relations. In fact, trade openness has been found to contribute to development and higher living standards. Kuwait, as part of the GCC, benefitted from preferential tariff treatment and strengthened cooperation with major industrial nations. The aim of this paper is to identify Kuwait’s role and participation in international trade governance and relations. The research both sets the precedent for understanding the World Trade Organisation’s framework and explores the nature and relevance of Kuwait’s trade profile. More so, the research analyses how Kuwait benefits from being part of the GCC free trade area and understanding why a Customs Union has not been achieved yet. This key step would lead to greater economic integration and development in several dimensions for its members.