Africa Trade AgreementsAfrica Trade Agreements

Africa Trade Agreements

Greater Arab Free Trade Area (GAFTA)


Countries Involved:Africa Economic Institute Egypt, Africa Economic Institute Iraq, Africa Economic Institute Jordan, Africa Economic Institute Kuwait, Africa Economic Institute Libya, Africa Economic Institute Mauritania, Africa Economic Institute Somalia, Africa Economic Institute Sudan, Africa Economic Institute Tunisia, Africa Economic Institute Syria, Africa Economic Institute United Arab Emirates, Africa Economic Institute Yemen, Africa Economic Institute Algeria,
Area of Cooperation:Goods, Communication, natural resources, tariff, agriculture,
Summary:

 


GAFTA is supervised and run by the Arab Economic Council in the Arab League. GAFTA has a high income, population, and area and has significant resources available.

The Greater Arab Free Trade Area was a project adopted in 1997, when 17 Arab League members agreed on decreasing the customs on local production and to make an Arab Free Zone for exports and imports between members.



  Extended Topics:

GAFTA Conditions:


1.Instruct the inter-customs fees:


To reduce the Customs on Arab products by 10% annually, the 14 Arab states reported their custom tariff programs to the Security Council of the Arab League to coordinate them with each others, except for Syria that is still using the Brussels Tariff System


2.Applying the locality of the Arab products:

All members have shared their standards and specifications to help their products move smoothly from one country to another.The League also created a project to apply the Arab Agricultural Pact:
which is to share the standards of the agricultural sector and inject several more restrictions and specifications where all members have involved in them. The Arab league granted exceptions, which allow a customs rate for certain goods, to six members for several goods, however rejected requests by Morocco, Lebanon and Jordan  for additional exceptions.

3.Private sectors:


The League created a database and a service to inform and promote for the private's sectors benefits, and how their work would be in the GAFTA treaty is needed.

 

4.Communication:


The Arab Economic and Social Council in its 65th meeting agreed on pointing a base for communication to ease communication between member states, and also to work to ease communication between the Private and public sectors to apply the Greater Arab Free Trade Area between members.

5.Customs Duties:

In the 67th meeting the Arab Economic and Social Council agreed that the 40% decrease on customs on goods in the past 4 years of the GAFTA will continue and following the decisions of the Amman Summit of the Arab League, the members will put more efforts to eliminate all customs duties on local Arab goods.

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