The Arab League is shifting its focus from regulatory frameworks to involving the private sector in the Arab Free Trade Zone, with the goal of increasing inter-Arab trade to 25% of total trade by 2030, up from 14% currently. Ahmad Nizar Jamil, director of the Arab League's unit on Arab complementarity, made the announcement at a two-day workshop in Tunis on "Popularizing the benefits of the Arab Free Trade Zone". The workshop aims to inform the private sector about the benefits and opportunities offered by the free trade zone.
The Arab Free Trade Zone has been in effect since January 2005, but progress has been slow due to a focus on regulatory and institutional frameworks. The Arab League has started to involve the private sector, which is the main driver of the economy. Jamil stated that the goal is to meet with the Tunisian private sector to inform them about the benefits of the free trade zone and how to take advantage of it to boost Tunisia's external trade with Arab countries.
The Arab League is working on a project to integrate the private sector into the institutions of the Arab League's General Secretariat. The project aims to associate the private sector in the decision-making process and to benefit from their expertise. Jamil added that the project has been presented and is awaiting approval and feedback from member states.
Inter-Arab trade has experienced fluctuations, reaching 14% at times, but dropping due to global crises such as Covid-19 and the economic crisis. Jamil explained that there are similarities in the composition of exports and imports among Arab countries, which offers opportunities for complementarity. He projected that involving the private sector will help increase inter-Arab trade to 25% by 2030.
Mohamed Jamel Elifa, director of economic and commercial cooperation at the Tunisian Ministry of Trade and Export Development, highlighted the existence of possibilities for complementarity among Arab countries. Some countries are producers of food products, while others are net importers. The workshop aims to popularize the benefits of the Arab Free Trade Zone and the opportunities it offers.
The free trade zone offers total exemption from customs duties and equivalent taxes since January 1, 2005. Elifa noted that this is an opportunity for economic operators in the Arab region to benefit from these exemptions. He explained that some Arab countries are net importers of agricultural products, while others are producers, and the free trade zone offers total exemption for agricultural products.
To benefit from these advantages, the private sector must comply with certain criteria, including rules of origin. Elifa stated that the different support structures explain to operators how to comply with the rules of origin, which have been revised to strengthen the principle of complementarity between Arab countries. The workshop with the private sector follows meetings between Arab League officials and public operators.
Key points
- The Arab League aims to increase inter-Arab trade to 25% by 2030.
- The Arab Free Trade Zone offers total exemption from customs duties and equivalent taxes.
- The private sector must comply with rules of origin to benefit from the free trade zone's advantages.
