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Changes in cross-border trade costs in the Pan-Arab free trade area, 2001-2008

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  • Hoekman, Bernard
  • Zarrouk, Jamel

Abstract

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.

Suggested Citation

  • Hoekman, Bernard & Zarrouk, Jamel, 2009. "Changes in cross-border trade costs in the Pan-Arab free trade area, 2001-2008," Policy Research Working Paper Series 5031, The World Bank.
    • Handle: RePEc:wbk:wbrwps:5031
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    References listed on IDEAS

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    1. Hiau LooiKee & Alessandro Nicita & Marcelo Olarreaga, 2009. "Estimating Trade Restrictiveness Indices," Economic Journal, Royal Economic Society, vol. 119(534), pages 172-199, January.
    2. Péridy, Nicolas & Abedini, Javad, 2008. "The Greater Arab Free Trade Area(GAFTA): an Estimation of Its Trade Effects," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 23, pages 848-872.
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    Cited by:

    1. Céline Carrère & Julien Gourdon & Marcelo Olarreaga, 2012. "Regional Integration and Natural Resources: who benefits? Evidence from MENA," International Economics, CEPII research center, issue 131, pages 23-41.
    2. Zouheir El-Sahli, 2023. "The Partial and General Equilibrium Effects of the Greater Arab Free Trade Agreement," The International Trade Journal, Taylor & Francis Journals, vol. 37(2), pages 185-199, March.
    3. Olivier Cadot & Julien Gourdon, 2012. "Assessing the price-raising effect of non-tariff measures in Africa," Working Papers 2012-16, CEPII research center.
    4. Henrik Horn & Petros C. Mavroidis & André Sapir, 2010. "Beyond the WTO? An Anatomy of EU and US Preferential Trade Agreements," The World Economy, Wiley Blackwell, vol. 33(11), pages 1565-1588, November.
    5. Olivier Cadot & Julien Gourdon, 2014. "Editor's choice Assessing the Price-Raising Effect of Non-Tariff Measures in Africa," Journal of African Economies, Centre for the Study of African Economies, vol. 23(4), pages 425-463.
    6. Ederington,Josh & Ruta,Michele, 2016. "Non-tariff measures and the world trading system," Policy Research Working Paper Series 7661, The World Bank.
    7. Bourdet, Yves & Persson, Maria, 2011. "Reaping the Benefits of Deeper Euro-Med Integration Through Trade Facilitation," Working Papers 2011:15, Lund University, Department of Economics.
    8. Sekkat, Khalid, 2010. "Arab Economic Integration: Missing links," CEPR Discussion Papers 7807, C.E.P.R. Discussion Papers.
    9. Vaqar, Ahmed & Ghulam, Samad, 2011. "Trade facilitation for economic corridors in South Asia: the perspective of Pakistan," MPRA Paper 31368, University Library of Munich, Germany.
    10. Sofiane Ghali & Habib Zitouna & Zouhour Karray & Slim Driss, 2013. "Effects of NTMs on the Extensive and Intensive Margins to Trade: The Case of Tunisia and Egypt," Working Papers 820, Economic Research Forum, revised Dec 2013.
    11. Georges Harb, 2017. "Institutions and Growth in the Arab and Middle Eastern Countries," International Journal of Economics and Financial Issues, Econjournals, vol. 7(1), pages 365-376.

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    Keywords

    Transport Economics Policy&Planning; Trade Law; Free Trade; Trade Policy; Transport and Trade Logistics;
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