Consolidation of GAFTA Economic Integration for Trade in Goods Guided By the European Experience

Abstract

The Greater Arab Free Trade Area (GAFTA) is considered the most important agreement aiming to establish Arab economic integration in this era. This agreement implemented gradual abolishment of tariffs and in 2005 GAFTA member states totally abolished tariffs. Unfortunately, the abolishment of tariffs among GAFTA member states was not a substantial and essential factor to the increase of trade among GAFTA member states. The EC initiated gradual dismantlement of internal tariffs over 12-year transitional period started in 1957, and succeeded to confront NTBs by signing the SEA in 1986. In addition, the EC initiated many unified policies that positively affected intra-trade growth rate. "- The research indicates that GAFTA needs many steps in order to be effective. The most

important steps needed are; reaching the common rules of origin, harmonizing measures and standards, abolishing NTBs, termination of bilateral FTAs signed by GAFTA member states and finally termination of any potential FTAs with third countries. In addition, GAFTA should evolve itself in order to reach the common Arab market. This goal could be achieved through establishing the CET and CU, initiation of common policies, liberalizing services sector, easing the inflow of Arab investments and finally liberalizing labour movement.