29 March - 4 April 2001
Issue No.527
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Al-Ahram Weekly On-line 29 March - 4 April 2001 Issue No.527 |
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EU seeks opposite number
An official French delegation visiting Cairo highlighted the importance of Arab economic integration to regional stability and increased foreign investment. Sherine Nasr reports
Europe seems to be harbouring a growing interest in economic links between the countries of the Middle East. Last week, Ahmed Guweili, secretary-general of the Council for Arab Economic Unity (CAEU), received a delegation commissioned by the French Foreign Ministry to visit the region and investigate trade and business relations among Arab countries, Israel and Turkey. The delegation is on a six-month tour to assess the nature and degree of economic integration among countries in the region. The evaluation will encompass different fields, including trade, business, the flow of information, as well as technology and human resources. "We chose Egypt as our first destination," said Patrick Lamentini of the French Foreign Ministry.
Guweili
Lamentini stressed that regional integration is key to peace and stability in the area. "It has become clear that economic integration has a very positive impact on foreign investments. It is easier and more profitable for a European company to establish business in a region where unified trade, taxes and customs procedures have been established," he said.
Indeed, the necessity of regional economic convergence has already been realised by a number of member states of the CAEU, which comprises Egypt, Iraq, Libya, Jordan, Syria, Yemen, Mauritania, Sudan, Somalia and Palestine. An Arab Common Market agreement was signed by seven member states in 1964, but has never taken off. However, Egypt, Iraq and Libya have already lifted all tariffs barriers between them. Some other signatories to the agreement -- Jordan, Syria, Yemen and Mauritania -- are set to follow suit in 2002.
Big hopes are also pinned on the recommendations of the Arab Summit held in Jordan this week. Egypt has proposed convening an Arab Economic Summit in Cairo next November.
According to Guweili, the CAEU submitted a blueprint for a new strategy for economic integration which is based on developing investment structures and maintaining a better flow of technology and information among Arab countries.
"Establishing a complete database on every economic activity will help the flow of investment within the region," Guweili said.
He underlined two main impediments to the economic advancement of Arab countries: the lack of effective economic and management institutions specialised in exports and marketing and the absence of transfer of technology and know-how. "This region has a lot to export to Europe. Yet, how to get these products into European markets in the right quality and at the proper timing remains a challenge," he said.
To bring Arab economic ties out of their infancy, Guweili said, intergovernmental cooperation is insufficient. "Strengthening economic relations should be carried out by the private sector. Business associations and trade unions in the region should be able to take on a more active role," he said.
Under the umbrella of the CAEU, 27 Arab commodity and service unions have been formed. Guweili believes these entities -- such as the Arab Unions for Steel, Food Industries, Pharmaceuticals, Services, Land Transportation, Banking and Insurance -- should be regarded as effective integrative mechanisms of Arab economic unity.
Membership in these unions is voluntary and open to unions in member as well as non-member states of the CAEU. "Through this 'business to business' mechanism, private as well as government-owned companies can freely exchange information, technology, human expertise, in addition to doing business," said Guweili.
Meanwhile, a unified Arab stance on issues of agricultural and property rights should be adopted during the fourth ministerial meeting of the World Trade Organisation (WTO) due to be held in Qatar next November.
Guweili pointed out the importance of voicing Arab concerns at this conference, over the protectionist measures adopted by advanced countries against Third World exports.
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