Optimism surrounds Arab Free Trade Zone

Within a plan to boost Arab economic strength in order to enhance the Arab states' position in international markets and cope with international trade liberation and the emergence of economic blocks, customs among Arab Free Trade Zone Agreement member countries will be reduced by 10% starting this month.

The Arab Free Trade Zone Agreement (AFTZA) aims to apply a 10% customs reduction on all commodities each year over a period of 10 years starting in January 1998 and ending on December 31, 2007, culminating in the full liberation of Arab trade. It also stipulates that the member countries may agree to put any commodity on the instant full liberation list.

Regarding Arab potential, analysts believe that the Arab region possesses great potential that can be exploited by setting up the free market zone. The region has abundant production and natural resources that need new export markets. The increase of external trade and investments will lead to an increase in the gross national product.

The analysts pointed out that the application of economic reform plans in many of the Arab countries is making the economic systems similar, which is making possible the removal of obstacles in the way of increased trade.