Entry into force of the convention
The economic and Social Council approved by its Resolution No. 1317 d 59 dated 19/2/1997 the executive program and its timetable for the establishment of an Arab free trade zone in accordance with the provisions of the agreement on the facilitation and development of trade exchange between Arab countries and this zone is in line with the provisions of the World Trade Organization and its general rules governing World Trade.
Coming into effect
The agreement on facilitation and development of trade exchange started on 1/1/1998 with a reduction rate of 10% per annum.
Exempt goods
All Arab goods exchanged between the States Parties shall be liberalized in accordance with the principle of gradual liberalization, which is applied starting from 1/1/1998, provided that the full liberalization of all Arab goods is completed by the end of the period set for the establishment of the Arab free trade zone on 1/1/2005, and by agreement of the states parties during the implementation of the program, any goods can be placed under immediate liberalization, and gradual liberalization starts on the following lists of Arab goods :
Agricultural and animal commodities commodity Chapters 1 to 24, whether in their initial form or after changes have been made to make them fit for consumption\
The production seasons (agricultural calendar) are determined for a number of agricultural goods in which these goods do not enjoy exemptions and reductions, provided that agricultural countries determine the agricultural goods that they wish to include in the agricultural calendar, and the agricultural calendar has ended by 2005, which means the liberalization of all agricultural goods and exemption from all customs duties, duties and taxes with a similar effect.
Industrial goods for commodity classes from 25 to 96
The provisions of this program do not apply to products and materials prohibited for import, circulation or use in any of the countries for religious, health, security, environmental or quarantine reasons, and the states parties are obliged to submit a statement of these products as well as any amendments to it\
The provisions of this program do not apply to products located within the free zones, as the procedures for the treatment of products within the free zones have not been specified
Preferential advantage
The reduction started at 10% per annum starting in 1998, to reach 100% in 2005, and during the Amman summit in 2002, it was agreed to increase the annual reduction rate to 20%, to reach 80% in 2004 and to 100% in 2005.
Current status of implementation
1 – the number of Arab countries that have joined so far has reached 17 Arab countries, namely :
Jordan, UAE, Bahrain, Tunisia, Saudi Arabia, Syria, Iraq, Oman, Qatar, Kuwait, Lebanon, Libya, Egypt, Morocco, Sudan, Palestine, Yemen.
2-there are three member states in the region that have not yet begun to apply the gradual reduction of customs duties, duties and taxes with a similar effect, namely (Palestine, Sudan, Yemen).
– Yemen is reducing 16% of customs duties on its imports from member states annually starting from 2005 and the full exemption will be applied by 2010.
– Sudan will reduce 20% of customs duties on its imports from member states annually starting from 2006 and full exemption will be applied by 2010.
As for Palestine, it is exempt from applying any discounts on its imports from member states, while all Palestinian exports to Arab countries are exempted from all customs duties and taxes with a similar effect in accordance with the Arab summit resolution in Tunis No. 274 of 2004.
3-the reduction in 2005 reached 100%
Exceptions :
4-all exceptions granted to Member States expired on 16/9/2002
Rules of origin
1-the Arab rules of origin are being dealt with for the purposes of applying the agreement on facilitating and developing trade exchange between Arab countries,the value added ratio is not less than 40%
2-detailed Arab rules of origin derived from the rules of origin of the European Union are currently being prepared to protect Arab production from the entry of products that do not belong to the member states of the agreement into the Arab countries and also aim to grant customs discounts on Arab products that are completed to the Agreed Value-Added ratio.
3-all non-tariff restrictions( seasonal restrictions, import and export licenses, and all quantitative and monetary restrictions) have been canceled.
Dispute resolution mechanism: the list of procedural rules related to the settlement of disputes between Arab countries has been finalized.
Cancellation of certification of certificates of origin and accompanying documents and documents by embassies and consulates.
Services agreement: the tables of obligations of the countries under the services agreement are being discussed to reach an agreement on services, taking into account the obligations of the Arab countries within the framework of the World Trade Organization.
– A detailed schedule of fees for services is currently being prepared to determine whether they include some fees with a similar effect.
Treatment of products of free zones: goods and products produced within the free zones are not subject to the provisions of the agreement on facilitation and development of trade exchange and its executive program for the establishment of a free trade zone, i.e. not subject to any discounts or customs exemptions
