Greater Arab Free Trade Agreement

Greater Arab Free Trade Agreement

The creation of this region supports the Arab business environment and the intra-Arab Arab trade movement, thus expanding the possibilities for integration between Arab markets. It is thus an advanced step towards Arab economic cooperation and investment in the trade opportunities available in Arab markets. The region should also insist on a cleaner investment environment to attract investment and joint ventures and improve the competitiveness of Arab products, as tariffs will be abolished, many procedures and charges of similar effect will be removed and non-tariff barriers will be minimized, the Arab intermediate. The region has been designated as a large-scale Free Trade Area (GAFTA) to distinguish it from country-based free trade zones. The agreement aims to create a free trade area between The Member States, in addition to the increase in internal trade on the one hand, and the European Union on the other. In addition, industrial integration between the countries of the Arab Mediterranean will be improved by the implementation of the pan-Euro-Mediterranean rules of origin and by the application of the principle of origin. This will increase Member States` export capacity to the EU market and increase the attractiveness of foreign and European direct investment. In February 1997, the League decided to create, by 2008, an Arab free trade area, also known as the Arab Arabia Free Trade Area or the Pan-Arab Free Trade Area. This would be achieved through a 10% annual reduction in tariffs and the phasing out of trade barriers. 18 of the 22 Arab League states signed the agreement, which came into force on 1 January 1998.

The Arab League has a long history of trying to promote trade and economic cooperation between its member states, with several initiatives taken in the 1950s and 1960s. The Council of Arab Economic Unity (CAEU) was established on 30 May 1964 by Egypt, Iraq, Jordan, Kuwait, Libya, Mauritania, Palestine, Palestine, Saudi Arabia, Sudan, Tunisia, Syria, the United Arab Emirates and Yemen. [1] An agreement was signed in 1981 to facilitate and promote inter-arabian trade, but it had little effect. The Agadir agreement on the creation of a free trade area between the Mediterranean Arab countries was signed on 25 February 2004 in Rabat, Morocco. [3] The agreement aimed to establish free trade between Jordan, Tunisia, Egypt and Morocco, considered the first possible step in the creation of the Euro-Mediterranean Free Trade Area, as envisaged in the Barcelona process. [4] The Greater Arab Free Trade Area (GAFTA) is a pan-Arab free trade area established in 1997. It was founded by 14 countries: Bahrain, Egypt, Iraq, Kuwait, Lebanon, Libya, Morocco, Oman, Qatar, Saudi Arabia, Sudan, Syria, Tunisia and the United Arab Emirates. [5] [6] The formation of the GAFTA took place following the adoption by the Arab League Economic and Social Council (ESC) of the Arab Trade Facilitation and Development Agreement (1981) and the approval of seventeen Arab League member states at a summit in Amman, Jordan, on the Greater Arabia Free Trade Agreement (1997). In 2009, Algeria joined ALLIANCE IN 2009 as the 18th member state. GAFTA is monitored and operated by ESC.

[7] Article 2 requires the signatories of the Economic Unity Agreement to work towards the objectives of Article 1 by wishing, in accordance with the Economic Unity Agreement adopted on 3 June 1957, “to organise and consolidate economic relations between the Arab League States on the basis of their natural and historical ties; and to create the best conditions for flowering their economies, to develop their resources and ensure the prosperity of their countries. [2] The foundations of economic relations between states in the Council of Arab Economic Unity are defined in Chapter 1, Articles 1 and 2 of the Economic Unity Agreement: the 17 GAFTA member states are: Algeria, Bahrain, Egypt, Iraq, Kuwait, Lebanon, Libya, Morocco, Oman, Palestine, Qatar, Saudi Arabia, Sudan, Syria, Tunisia, United Arab Emirates and Yemen.

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