Foreword

Arab leaders and stakeholders are, more than ever, keen to accelerate progress towards Arab economic integration as a vehicle for economic growth, job creation and poverty reduction. The aim is to develop regional value chains and integrate in global value chains. Integration efforts have already resulted in the establishment of the Pan-Arab Free Trade Area (PAFTA), bringing together 18 Arab countries, with a combined population of over 375 million and a total gross domestic product of $2.8 trillion. This initiative has encouraged Arab policymakers to develop a much broader integration scheme in the form of an Arab Customs Union (ACU), announced at the first Arab Economic and Social Development Summit of the League of Arab States, held in Kuwait in 2009, with the aim of achieving a functional customs union by 2015. To date, however, no tangible results have been reached and no decisions on the launch date have been taken. Furthermore, the requirements of establishing the union have yet to be fulfilled by member States. At the 26 th Arab Summit, held in Sharm el Sheikh in March 2015, member States were requested to form national teams composed of relevant ministries and institutions to follow up on the ACU requirements at the national level to ensure full endorsement and a gradual implementation starting in 2018. Yet experiences have shown that moving from a free trade area to a customs union is not an easy task. A move towards an ACU should be first consolidated in all member States by ensuring the full operation of free trade agreements (FTAs) and strengthening economic integration beyond trade. Outstanding issues regarding the implementation of PAFTA must therefore be resolved before the region can move towards a customs union.

Sustainable Development Goals:

Peace, Justice and Strong Institutions