Arab Rules of Origin for the Purpose of Implementing the Agreement to Facilitate and Develop Trade among Arab States
New
* Agreement to Facilitate and Develop Trade Among Arab States
* L'aacord De Facilitation Et De Development des Echanges Commerciaux Entre Les Etats Arabes
* Executive Program of Agreement to Facilitate and Develop Trade Among Arab Countries to Establisfh Pan-Arab Free Trade Area
* Le Programme Execitif De L'aacord De Facilitation Et De Developpement Des Echanges Commerciaux Entre Etats Arabes Pour L'instauration De La Grande Zone Arabe De Libre Echange
Summary and Developments
Main provisions:
1. Gradual reduction in tariff rates, fees, and taxes with similar implications at an annual rate of 10% starting 1/1/1998 and based upon rates effective January 1st 1998.
2. Products that are forbidden (to be traded) for religious, environmental, security, and health reasons are exempted from the Execution Program of GAFTA. These products will be subjected to applicable national laws.
3. Removal of all non-trade barriers (administrative, quotas, and monetary)
4. Application of the “Agricultural Calendar” given the following conditions:
Maximum of ten products to be included on the list per country
The maximum time allowed for a listed product to remain on the calendar is 7 months (per year) with a maximum of 45 months in total for all listed products
The Agricultural Calendar does not authorize prohibitions. Products included in the calendar are allowed to enter, however they do not benefit from the gradual reductions in tariff rates during specific time periods. Note that in other periods, the same listed products would be subjected to the lower rates.
5. The possibility of exempting a number of industrial products from the Execution Program of GAFTA, subject to certain rules and conditions and based upon a decision of the Social and Economic Council of the Arab League.
Recently a number of amendments to the implementation program were introduced, among which, changes to the agricultural calendar whereby the maximum number of products listed was reduced from 10 to 9 and the maximum number of months permitted for all listed products was reduced from 45 to 35 months (see bullet 4).
By the end of 2002, sixteen countries, including Lebanon, has signed on to GAFTA with most countries facing difficulties in implementing the Executive Program.
The challenges facing Lebanon include protecting infant industries and addressing the fiscal implications as a result of liberalizing trade with members of GAFTA.
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