Tayseer Agreement Countries

First, it is necessary to use the dummy variable only in the second period (1982-89), as the agreement was not in effect during the first period. Second, the document does not indicate the coefficient of the variables of dummies, so the effects of the ratification of the agreement are not known. Although intra-Arab trade preference agreements include raw materials and agricultural products, most industrial products of Arab origin are excluded from the preferential regime. They are therefore subject to the climbing scales mentioned above. Second, a comparison of the share of intra-Arab trade in all Arab trade by the major regional trade associations shows that Arab export and import markets are the main target of Arab trade with developing countries. Given the inability of regional organisations to promote intra-Arab trade, partly because of their indifference to the diverse aspirations and potential of some Arab Member States, it is necessary to choose a new method to find ways to develop intra-Arab trade and solve its problems. Such means begin with a study of internal potential and internal constraints in the member countries of each organization, and then between the different organizations. Trade agreements form the basis of preferential treatment between Arab countries. The entry into force of several such agreements since the early 1950s reflects the desire of Arab governments to provide a means of increasing intra-Arab trade. As a result of the global oil price adjustment in 1973-74 and the accumulation of financial resources by some Arab countries, the interests of common Arab action have extended from the simple liberalization of trade to other new areas. Interest in common Arab projects seemed to be the most promising way to promote Arab integration.

Capital transfers from the oil surplus Arab countries to oil-free Arab countries were encouraged, as was the transfer of Arab labour in the opposite direction. During this period, a number of important institutions were established to improve Arab cooperation, such as the Saudi Monetary Agency (SAMA), the Arab Fund for Economic and Social Development (AFESD) and the Inter-Arab Investment Guarantee Corporation (IAIGC). This interest in trade liberalization was maintained and, in 1981, the member countries of the League of Arab States signed the agreement on facilitation and promotion of trade among their members.