Libya's eastern-based government says it may announce force majeure on oil fields, ports
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Arab News
4 hours ago
- Arab News
Shifting sands: GCC tariffs in an age of economic nationalism
In an era of increasing global protectionism, the Gulf Cooperation Council countries find themselves at a crossroads, contemplating trade policies that were previously unnecessary in their oil-driven economies. While economists have long maintained that tariffs harm international trade, reduce market competition, and ultimately hurt consumers through higher prices and limited choices, the changing global landscape presents a strong case for the strategic tariff implementation in the Gulf region. Historically, GCC economies have operated from a position of strength, with massive oil exports generating substantial trade surpluses and foreign currency reserves. This economic reality, combined with a relatively small manufacturing base and limited need for tax revenue, meant that protective trade measures were largely unnecessary. However, the growing trend toward trade barriers and economic nationalism requires a reexamination of this policy. While crude oil faces few direct tariffs, it encounters significant indirect barriers in major economies, including substantial fuel excise duties, generous subsidies for alternative energy sources, and various environmental regulations and carbon taxes. These measures effectively function as non-tariff barriers, dampening demand while raising costs for consumers in importing nations. This situation creates a compelling case for reciprocal measures by GCC countries, especially in the current environment. The risk of retaliation to any GCC-imposed tariffs appears minimal, as developing nations can ill afford to further tax fuel imports, while developed countries have already implemented extensive penalties on fossil fuels and subsidies for alternatives. This asymmetry in trade relationships provides the GCC with a unique opportunity to implement tariffs without facing significant economic backlash. The revenue potential of strategic tariffs is considerable. Saudi Arabia, for instance, imports approximately $75 billion worth of goods from Europe and North America annually. A 10 percent baseline tariff on these imports would generate over $7 billion in revenue, which could be directed toward supporting local industries and economic diversification efforts. This approach would complement the existing value-added tax, which has proven successful but may be difficult to increase beyond current levels in Saudi Arabia, for example. One advantage of tariffs is that they can target foreign products while sparing domestic businesses, potentially fostering local industrial development. This selectivity could be further refined by implementing exemptions for essential items such as pharmaceuticals and agricultural products, ensuring that basic consumer needs are not significantly impacted. The current global economic climate suggests that protectionist measures will remain a significant feature of international trade for the foreseeable future. The question for GCC nations is not whether tariffs are theoretically optimal, but how to respond pragmatically to an increasingly protectionist world. A measured approach — with a moderate tariff rate and carefully considered exemptions — could achieve multiple objectives. It would generate meaningful revenue, preserve foreign currency reserves, and provide modest protection for domestic industries. Such a policy could be designed to avoid excessive disruption to import patterns while still creating incentives for local production and economic diversification. The GCC's position in this evolving trade landscape is unique, as it enters the tariff debate from a position of relative economic strength. This allows for a more strategic and measured approach to tariff implementation, rather than reactive protectionism. While the fundamental economic arguments against tariffs remain valid, the practical realities of the current international trade environment may necessitate a recalibration of traditional free-trade positions. The challenge lies in crafting policies that can generate revenue and protect domestic interests while minimizing economic distortions and maintaining crucial international relationships. The path forward for the GCC will require careful balancing of these competing interests, but the case for selective tariff implementation appears increasingly justified in today's global context. The question is no longer whether tariffs will play a role in international trade, but how the GCC will position itself in this new economic reality.
Arab News
5 hours ago
- Arab News
Libya to hold rare local vote in test for divided nation
TRIPOLI: Libya is set to hold rare municipal elections on Saturday, in a ballot seen as a test of democracy in a nation still plagued by division and instability. Key eastern cities — including Benghazi, Sirte and Tobruk — have rejected the vote, highlighting the deep rifts between rival administrations. The UN mission in Libya, UNSMIL, called the elections 'essential to uphold democratic governance' while warning that recent attacks on electoral offices and ongoing insecurity could undermine the process. 'Libyans need to vote and to have the freedom to choose without fear and without being pressured by anyone,' said Esraa Abdelmonem, a 36-year-old mother of three. 'These elections would allow people to have their say in their day-to-day affairs,' she said, adding that it was 'interesting to see' how the areas affected by the clashes in May would vote. Since the 2011 NATO-backed uprising that toppled longtime leader Muammar Qaddafi, Libya has remained split between Tripoli's UN-recognized government, led by Prime Minister Abdulhamid Dbeibah and its eastern rival administration backed by military strongman Khalifa Haftar. Khaled Al-Montasser, a Tripoli-based international relations professor, called the vote 'decisive,' framing it as a test for whether Libya's factions are ready to accept representatives chosen at the ballot box. 'The elections make it possible to judge whether the eastern and western authorities are truly ready to accept the idea that local representatives are appointed by the vote rather than imposed by intimidation or arms,' he said. Nearly 380,000 Libyans, mostly from western municipalities, are expected to vote. Elections had originally been planned in 63 municipalities nationwide — 41 in the west, 13 in the east, and nine in the south — but the High National Elections Commission (HNEC) suspended 11 constituencies in the east and south due to irregularities, administrative issues and pressure from local authorities. In some areas near Tripoli, voting was also postponed due to problems distributing voter cards. And on Tuesday, the electoral body said a group of armed men attacked its headquarters in Zliten, some 160 kilometers east of Tripoli. No casualty figures were given, although UNSMIL said there were some injuries. UNSMIL said the attack sought to 'intimidate voters, candidates and electoral staff, and to prevent them from exercising their political rights to participate in the elections and the democratic process.' National elections scheduled for December 2021 were postponed indefinitely due to disputes between the two rival powers. Following Qaddafi's death and 42 years of autocratic rule, Libya held its first free vote in 2012 to elect 200 parliament members at the General National Congress. That was followed by the first municipal elections in 2013, and legislative elections in 2014 that saw a low turnout amid renewed violence. In August that year, a coalition of militias seized Tripoli and installed a government with the backing of Misrata — then a politically influential city some 200 kilometers east of Tripoli — forcing the newly elected GNC parliament to relocate to the east. The UN then brokered an agreement in December 2015 that saw the creation of the Government of National Accord, in Tripoli, with Fayez Al-Sarraj as its first premier, but divisions in the country have persisted still. Other municipal elections did take place between 2019 and 2021, but only in a handful of cities.
Asharq Al-Awsat
a day ago
- Asharq Al-Awsat
At Least 26 Die in Migrant Shipwreck Off Italy's Lampedusa Island
At least 26 people died in a migrant shipwreck on Wednesday off the southern Italian island of Lampedusa and 60 survivors were brought ashore, the coastguard said, warning more bodies could be missing as search operations continue. The disaster, in this case involving people travelling from Libya, is the latest to befall migrants making the perilous Mediterranean crossing from Africa to Europe. An Italian law enforcement aircraft spotted a capsized boat with bodies in the water about 14 miles (23 km) off Lampedusa on Wednesday morning, triggering a rescue operation, the coastguard said in a statement. Based on initial accounts from the rescued migrants, they departed from the Tripoli area in Libya in the early morning aboard two boats. One of the vessels began taking on water and they transferred to the other one, which later capsized in choppy seas, a source close to the matter said. Initial tallies from the UN refugee agency UNHCR indicated that the group of migrants comprised some 92 to 97 people, Reuters reported. Since the start of this year, 675 people have died in the central Mediterranean while trying to make the crossing from Africa, said Filippo Ungaro, a UNHCR spokesperson in Italy. "The survivors brought into the hotspot arrived in reasonable health; naturally, there was exhaustion, and psychologically they were quite shaken," said Imad Dalil, who heads the Italian Red Cross migrant hub on Lampedusa. Earlier, the Red Cross said a total 56 men and four women had been brought ashore following the accident. Prime Minister Giorgia Meloni's right-wing government has vowed to block migrant sea journeys from Africa and has passed measures against people smugglers, including tougher jail terms, urging allies to do the same. In a statement, Meloni expressed her sadness over the tragedy and said it showed the need for stronger action to stop illegal arrivals. "We therefore renew our commitment to combat these unscrupulous traffickers in the only way possible: by preventing irregular departures and managing migration flows," she said.
