Why Egypt sees the need for an Arab Common market

The last decade of the 20th century witnessed many events and changes most important of which were aspects of the international economic order, globalization and its impact on the flow of commodities, services and capitals.

Meantime, the phenomenon of economic blocs has become one of the given facts of the current international order as those blocs control more than 90 per cent of the world trade volume.

The most important economic event in the 20th century was the establishment of the World Trade Organization (WTO) that includes 141 members.

This organization acquires significance from the fact that it is not only an organizational framework which embodies the freedom of international trade in the field of commodities and services but also from its effective role in increasing world income by $ 212-510 billion, according to the UN Development Program (UNDP).

In face of these challenges facing the Arab nation, the establishment of the Arab common market has become essential for Arab countries not only as a regional economic bloc, but rather for its contribution to the maximization of benefiting from privileges of international trade in the age of globalization.

Based on this, comes President Hosni Mubarak call for holding an Arab economic conference in November.

On this occasion, the state information service (SIS) has conducted a study on the Arab common market discussing Arab obligations between The WTO and the Arab Common Market, the study elaborates the losses incurred by Arabs as a result of accession to the World Trade Organization and from the benefits that could be gained from the establishment of the Arab Common Market in the era of globalization, challenges of agreements on deregulating trade in the field of commodities and services.

*Providing a chance for Arab investments to move freely in the market zone and the establishment of productive and services projects in any Arab country.

*Establishment of giant industrial projects that are difficult for any individual country to set up, as they need much financing and technical expertise.

*Protecting emerging national commodities from the most favored nation principle upon which the WTO is based.

* Bolstering negotiating stance of the Arab group towards big economic blocs as economic interaction would give them better terms in its foreign trade.

* Securing large-scale economies, cutting down costs of production and a high level of quality.

*Redistribution of production elements and costs of production elements as each country will be specialized in the production of commodities it excels in.

* Sharing costs of production elements mainly in Technology.

*Improving international exchange rate and hence bolstering the status of Arab national currencies on world markets.

*Securing unified customs' tariffs that provide protection for commodities that must be protected from world competition.

*Coordinating stances for protecting Arab money markets and securing the necessary stability.

*Controlling unemployment problem that has reached 11 per cent of the volume of Arab labor force.