MUSCAT, Dec 31: Saudi Arabia and its five Gulf Arab allies agreed on Monday to expedite the implementation of a customs union by two years to 2003, paving the way for a long-sought free trade pact with the European Union.

The agreement was signed by leaders of the six oil-rich members of the Gulf Cooperation Council after a two-day summit in Oman. It sets a single tariff of five per cent, compared with a current range of between four and 15 per cent, delegates said.

The GCC comprises Saudi Arabia, Kuwait, the United Arab Emirates, Qatar, Oman and Bahrain. Together the six sit on nearly half of the world’s total proven oil reserves.

They had earlier set the start date for the customs union for 2005.—Reuters