Arab League Trade Agreement

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 Council of Arab Economic Unity (CAEU) was established on 30 May 1964 by Egypt, Iraq, Jordan, Kuwait, Libya, Mauritania, Mauritania, Palestine, Saudi Arabia, Sudan, Tunisia, Syria, the United Arab Emirates and Yemen. [1] The agreement aims to create a free trade area between Member States, in addition to increasing 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. The Greater Arab Free Trade Area (GAFTA) is a panaraabe free trade area that was 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] An agreement was signed in 1981 to facilitate and promote inter-arabian trade, but it had little effect. 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 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.