RIYADH, Oct 12: Finance ministers of Gulf Cooperation Council (GCC) states finalized here on Saturday procedures for the launch of their customs union in January, the bloc’s secretary general said.

“There was total agreement among the ministers on all issues discussed, mainly the launch of the customs union,” Abdul Rahman al-Attiya said at the end of the one-day meeting which also discussed a proposed monetary union.

“All obstacles have been sorted out and the launch will be on January 1, 2003 as approved in December by the GCC leaders,” Attiya told reporters.

Among the measures approved by the ministers was a mechanism for the payment of customs revenues and a computer linkup between the points of entry-exit of GCC states. GCC finance ministers in June agreed to distribute customs revenues on the basis of the final destination of imports.

The agreement would be implemented for a period of three years before being reevaluated for possible changes.

The customs union, advanced by the GCC states from 2005 to 2003, is seen as an essential step on the way to forming a Gulf common market.

The ministers also approved a timetable for monetary union planned for 2005 and a single currency in 2010, Attiya said.

They approved a recommendation made on Tuesday by GCC central bank governors to set up a specialized department at the secretariat general to oversee moves to adopt the monetary union and single currency.

A recommendation by the governors to ask the European Central Bank to study requirements for the monetary union was also approved.

The GCC leaders endorsed the steps at a summit in Muscat last year and also approved the US dollar as a yardstick for a single currency to be effective by 2010.

The currencies of the GCC member states are pegged to the dollar, except the Kuwaiti dinar, which is pegged against a basket of currencies, mainly the dollar.

The GCC groups Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.—AFP