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Changes in cross-border trade costs in the Pan-Arab free trade area, 2001-2008, Volume 1
Author:Hoekman, Bernard; Zarrouk, Jamel; Country:Middle East and North Africa;
Date Stored:2009/08/31Document Date:2009/08/01
Document Type:Policy Research Working PaperSubTopics:Transport Economics Policy & Planning; Free Trade; Trade Policy; Transport and Trade Logistics; Trade Law
Language:EnglishMajor Sector:Industry and trade
Rel. Proj ID:5M-Assessing Trade Integration In Pafta -- -- P113271;Region:Middle East and North Africa
Report Number:WPS5031Sub Sectors:Other domestic and international trade; General industry and trade sector
Collection Title:Policy Research working paper ; no. WPS 5031Volume No:1

Summary: The Pan-Arab Free Trade Area, negotiated under auspices of the Arab League, came into force in 1997. Under the agreement all tariffs on goods of Arab origin were to be removed by January 1, 2005. This paper summarizes the results of a firm-level survey in nine countries regarding the implementation of the Pan-Arab Free Trade Area. A majority of respondent companies report that tariffs on intra-regional trade have largely been removed, and that there has been a marked improvement in customs clearance-related procedures. Costs associated with administrative red tape and weaknesses in transport-related infrastructure services are ranked as the most important constraints to intra-regional trade. This suggests that from a policy perspective, efforts to reduce real trade costs deserve priority, including transportation and logistics services. Periodic monitoring and assessment of trade incentives and performance would help governments to benchmark performance and identify priority areas for action, at both the national and the sub-regional levels.

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