Based on the existing and continuous coordination and cooperation between the General Secretariat of the League of Arab States and the Union of Arab Chambers, which is the representative of the private sector and has an influential and effective role in the field of economic development, the General Secretariat of the League of Arab States will hold a joint workshop with the Union of Arab Chambers and in coordination with the Qatari Chambers of Commerce in the Arab countries, on July 18, on the sidelines of the conference "Social Responsibility of the Private Sector and its Role in Sustainable Development" held by the Union of Arab Chambers, on 17/7/2023, at the headquarters of the Union of Arab Chambers. Arab Chambers in the Lebanese capital, Beirut.

The workshop aims to raise awareness among representatives of the private sector of the importance of applying the principle of accumulation of origin and benefiting from preferential advantages if activated within the framework of the Greater Arab Free Trade Area. The organization of the workshop also comes within the framework of the interest given by the General Secretariat of the League of Arab States and the Union of Arab Chambers towards activating the principle of accumulation of origin within the framework of the Greater Arab Free Trade Area to maximize the benefit of its application, because of its positive impact and reflection on increasing the volume of intra-Arab trade.

 

First: Background:

The accumulation of origin is a trade policy applied within the framework of preferential trade agreements, which allows materials or goods obtained or manufactured in one of the member countries of a free trade agreement, whether regional or bilateral, to be treated as having the origin of the exporting country if imported from another member state of the same free trade agreement.

The main pillars of free trade agreements are where it allows participation between member states in the production process. In this context, the accumulation of origin helps to operationalize preferential arrangements under free trade agreements while allowing producers greater flexibility with regard to the origin of production inputs and parts involved in the manufacture of the final product.

Accumulation of origin is defined as a condition that allows goods acquired or manufactured in a country member of a free trade agreement to be considered as originating from another member country. Accumulation is an essential part of free trade agreements, as it allows the sharing of the production process between member countries in one of the free trade areas, and it is also one of the most important basic means to provide producers with a variety of sources of inputs and parts, as it allows the use of inputs and parts from suppliers located in the member countries of the free trade agreement and treating them as having the origin of the importing member state for the purpose of determining the origin of the final product.

 

Second: The importance and advantages of activating the principle of accumulation of origin within the framework of the Greater Arab Free Trade Area:

- The application of accumulation of origin contributes to the promotion and better regulation of trade among member countries, provides a better view of the productive capacities of the region and enhances the competitive advantage of each member country.

- It works to encourage small and medium enterprises to export to Arab countries by providing incentives and opportunities that can be made available by activating the principle of accumulation of origin.

- Helps to fully implement the provisions of the Greater Arab Free Trade Area and achieve its most important objective by increasing the volume of intra-Arab trade among member states, and providing opportunities to deepen integration between

Arab economies, so that member states can reach effective application and make great use of rules of origin within the framework of the region.

- The accumulation of origin allows one country to participate in the production process with production inputs imported from other countries, thus increasing reliable sources for production inputs, which would enhance regional economic integration among the member states of the Greater Arab Free Trade Area.

- The accumulation of origin leads to an increase in the welfare rates of the peoples and the economic growth of the Member States if it is applied effectively.

- Gives Arab member countries a better position in global supply chains.

 

Third: Workshop Objectives:

1. Introducing the principle of accumulation of origin in general, its types and the importance of activation within the framework of the Greater Arab Free Trade Area.

2. Raising awareness among representatives of the private sector of the importance of benefiting from the principle of accumulation of origin stipulated in the Agreement on the Facilitation and Development of Trade Exchange among Arab Countries, and benefiting from the preferential advantages granted if applied.

3. Highlighting the importance of effectively applying the principle of accumulation of origin among the member states of the Greater Arab Free Trade Area, which will lead to upgrading the volume of intra-Arab trade, and thus achieving more welfare for the Arab member states.

4. Exchange of information and best practices regarding the principle of accumulation of origin.

5. Identify the practical experiences of countries that apply the accumulation of origin within the framework of the Agreement on the Facilitation and Development of Trade Exchange among Arab Countries, or within the framework of other agreements such as the Agadir Agreement, and the benefit accruing to them as a result of its application.

 

Fourth: Workshop Themes:

- Introducing the principle of accumulation of origin and its types within the framework of the Greater Arab Free Trade Area.

- Highlight the mechanisms for activating the principle of accumulation of origin.

- Presenting the best international and regional experiences and practical practices on the principle of accumulation of origin.

- Presenting the experiences of the Arab member states of the Greater Arab Free Trade Area in applying the experiences of origin and the benefits accruing from it within the framework of other bilateral and regional agreements.

- Shedding light on the opportunities and challenges facing the competent authorities and stakeholders towards activating the principle of accumulation of origin.

 

Fifth: Participants:

The General Secretariat of the League of Arab States and the Union of Arab Chambers are keen to ensure the participation of all concerned and competent authorities and those interested in the accumulation of origin to maximize the benefit of holding the workshop and achieve the desired objectives, as well as representatives of the Qatari-Arab Chambers and representatives of the private sector, who are targeted to spread awareness among them of the importance of benefiting from the principle of accumulation of origin within the framework of the Greater Arab Free Trade Area, and accordingly participate in the workshop:

- Representatives of Qatari-Arab Chambers.

- Representatives of the private sector and SMEs.

- Members of the Technical Committee for Arab Rules of Origin.

- International and regional experts in the field of origin accumulation.

- Representatives of the Technical Unit of the Agadir Convention to present its experience in the field of accumulation of origin.

 

Sixth: Expected results of the workshop:

- Raising awareness about the principle of accumulation of origin, its importance, and the benefits to the public and private sectors if activated.

- Identify the main opportunities and challenges for the application of the principle of accumulation of origin.

- Discuss and identify the role of states in applying the accumulation of origin and encourage the private sector to benefit from the preferential advantages as a result of its activation.

- Strengthening cooperation among the Arab member states of the Greater Arab Free Trade Area and thus increasing the volume of intra-Arab trade.

 

Seventh: Place and Time:

The workshop will be held on the sidelines of the conference "Social Responsibility of the Private Sector and its Role in Sustainable Development" to be organized by the Union of Arab Chambers, during the second day of the conference on July 18, 2023 at the headquarters of the Union of Arab Chambers in the Lebanese capital, Beirut.

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Date published : 29 May 2023