Greater Arab Free Trade Agreement Research Paper

Greater Arab Free Trade Agreement - Research Paper Example The Economic and Social Council runs and manages the Greater Arab Free Trade agreement and has involved Algeria as another member state in 2009. This treaty is based on the large number of resources available in these countries, and the income that the countries can generate based on volumes due to large populations within the member countries. The member countries generate significant income based on the multiple objectives of the organization which are described further in this paper (Abedini and Peridy 1-2). Objectives of the Treaty The various objectives of this particular treaty include maintenance of local products in the industries so as to promote the internal economies of the countries, reduction of customs and other export fees in order to generate more income, maintaining and improving communication between countries in order to help promote and generate economic activity, and promoting private sector organizations within industries to help improve economic conditions of e ach country. Each objective has been analyzed in detail as well. The countries that are part of the trade agreement generate about 95% of the trade internally, while this trade also translates to about 90% across the world. The several objectives that this trade agreement aims to meet include 1. Improvement and Reduction of Fees in Customs The Arab countries have reduced their tariffs and customs fees by 10% on a yearly basis (40% reduction has already been performed in the customs fees) in order to help promote trade within the countries and to build on the economic systems through internal trade. 2. Promotion of Local Products within the Arab Nations Within the Arab countries, local products are being promoted as part of the agreement, which has far-reaching economic benefits, not only in terms of improved trade and economic welfare but also standardization of products within the countries as well. 3. Promotion and Enhancement of Local Sectors in the Countries The agreement entail s that each country has to promote its private organizations and local sectors by pushing local products in all the countries. For this purpose, a database has been created by the league which is utilized to promote benefits within the local sectors. 4. Improvement of Communication within and Between the Countries Communication between countries is another aim of the agreement, where improving and easing communication between the Arab countries can help promote better bilateral and multilateral trade for the greater economic progress of these countries. (Abedini and Peridy 4-6) Economic Motivation behind the GAFTA Agreement A larger number of research articles have been written in favor of and describing the nature of the Greater Arab Free Trade agreement without entailing or outlining the economic motivation and the economic benefits that are being derived from this agreement. Researchers like Tahir (331-6), Hadhri (35-8) and Bayar (22-7) explain how the Greater Arab Free Trade agr eement is based on objectives of the economic welfare of each Arab nation; however, the descriptive nature of these researchers does not explain why this treaty has been created in the first place. Some research is also available to explain in a limited manner, the ideology behind economic benefits to some particular countries like Morocco.