The planned inclusion of Jordan and Morocco in the Gulf Cooperation Council (GCC) countries would also allow GCC states to increase their exports to the US and the European Union through Jordan and Morocco, given the two countries' special economic relationship with the West, the Emirates Industrial Bank (EIB) said in its latest monthly economic bulletin. The study expected the surge in GCC investment in Jordan and Morocco to boost the GDP of those two countries, adding that they currently account for only 11 percent of the GCC's combined GDP. The GDP per capita in the GCC, which was created in 1981, is also almost seven times that in Jordan and Morocco. "For example, a five percent rise in GCC investment in Jordan and Morocco will contribute to a four percent rise in the GDP of the two countries…in time, this will help bridge the economic gap between the GCC and the two countries … the GCC can also help cut fiscal deficits in those two countries…all these measures will be vital for the success of the formation of a strong group capable of facing the challenges of the time and achieving more gains for all members." The study said the GCC and the two Arab kingdoms already have strong commercial relations, with their two-way trade surging to nearly $7.8 billion in 2010 from around $4.6 billion in 2009. However, the two sides should amend some economic laws to accommodate each other, mainly those concerning the GCC customs union. Currently, the GCC members enforce a unified five percent tariff on foreign imports as part of their customs union while tariffs in Jordan and Morocco range between 20 and 80 percent. Some food imports in the GCC are also exempted from tariffs, it said. "There is a need to amend some laws and legislations to facilitate the joining of those two Arab countries of the GCC," the study said. In another study, Credit Agricole said the inclusion of Jordan and Morocco into the GCC would add more than 12 percent to the bloc's economy which could soar above $one trillion in current prices. "Full integration of Jordan and Morocco into the GCC economic area would add 12.2 percent to the bloc's nominal GDP, based on 2010 data, bringing it solidly above the $one trillion mark." The study said it would be much easier for the GCC to absorb Jordan since its economy, worth $27.5 billion in 2010, is smaller and geographically closer. Morocco's economy was valued at $103.5 billion in 2010, and its inclusion in the GCC would lead to a sizeable adjustment in the GCC's economic structure, the study added.
