The Union of Arab Chambers, in partnership and cooperation with the General Secretariat of the League of Arab States, organized a joint workshop, on the sidelines of the conference "Social Responsibility of the Private Sector and its Role in Sustainable Development" on 18-7-2023 at the headquarters of the Union of Arab Chambers in the Lebanese capital, Beirut. The workshop was attended by representatives of the Qatari-Arab Chambers, representatives of the private sector and SMEs, as well as regional experts in the field of origin accumulation.

Speaking at the beginning of the workshop's agenda, the Secretary-General of the Union of Arab Chambers, Dr. Khaled Hanafi, pointed out that "despite the success of the efforts of Arab countries in terms of reducing tariffs within the framework of the Greater Arab Free Trade Area, greater efforts are still needed to overcome the unfavorable impact of non-tariff measures that cover about 50 percent of Arab trade exchanges."

He considered that "the similarity of production structures, low levels of economic diversification, high shipping costs, and low export competitiveness are the most important challenges facing the strengthening of trade relations between Arab countries," stressing "the importance of accelerating the completion of the requirements for the implementation of the Greater Arab Free Trade Area, promoting intra-Arab investments, moving towards developing regional value chains, and benefiting from distinguished international experiences to promote inter-Arab trade."

He said: There are great serious steps required of the Arab countries to be implemented, in order to get rid of the obstacles that still face the enhancement of the reality of intra-Arab trade, in order to move step by step towards the customs union, passing through the Arab common market, and then later reaching the union and economic integration."

He pointed out that "although the Arab countries preceded important economic blocs today, such as the European Union, which exceeded the volume of trade exchange between its countries within the limits of 70 percent, but unfortunately the volume of intra-Arab trade does not exceed the limits of 10 to 15 percent, which is a small number compared to what the Arab countries possess and store of the enormous assets and capabilities to enhance trade exchange among themselves.".

The Director of the Economic Integration Department at the League of Arab States, Dr. Bahjat Abu Al-Nasr, delivered a speech in which he addressed the importance and advantages of activating the principle of accumulation of origin within the framework of the Greater Arab Free Trade Area, "as the application of accumulation of origin contributes to promoting trade among member countries and better regulating it, as it provides a better view of the productive capacities in the region and enhances the competitive advantage of each member country. It also 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."

He pointed out that "the accumulation of origin helps to fully implement the provisions of the Greater Arab Free Trade Area and achieve its most important goal of increasing the volume of intra-Arab trade among member states, and providing opportunities to deepen integration among Arab economies, so that member states can reach effective application and benefit greatly from the rules of origin within the framework of the region. The importance of accumulation of origin also lies in giving Arab member states a better position in global supply chains."

For his part, the President of the Jordan Chamber of Commerce, Khalil Haj Tawfiq, explained that "Arab countries import at least one trillion dollars annually from foreign countries, while Jordan, for example, imports 4 billion dollars annually worth foodstuffs, while the volume of intra-Arab trade is modest for many considerations, including what is political and some of which is related to customs barriers imposed by countries, all of which are factors that limit the enhancement of the reality of trade exchange."

Hajj Tawfiq called for "speeding up the completion of all requirements for the implementation of the Greater Arab Free Trade Area, the most important of which is access to the Arab Customs Union, the full activation of the Agreement on the Liberalization of Trade in Services, and the development of the dispute settlement mechanism, monitoring and follow-up," stressing that "the Arab private sector must be involved in the decision-making process, as a key partner in achieving and developing intra-Arab trade and economic integration. This is done by involving it in trade negotiations and in the stages of work to develop the legislative and regulatory environment that supports the liberalization of intra-regional trade.

The workshop aimed 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:

1. 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.

2. 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.

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

4. 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.

- 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 define 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.

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

Cooperation Agreement

It is worth noting that during the workshop, a cooperation agreement was signed between the "Union of Arab Chambers" represented by its Secretary-General, Dr. Khaled Hanafi, and DIRECT VENTURES, represented by its CEO, Mr. Mohammed Al-Sabbah, where the agreement aims to strengthen the framework of cooperation between the two sides, spread the culture of the digital economy and promote e-commerce among Arab countries.

Source (Union of Arab Chambers)