Customs union is crucial to boost inter-Arab trade — Halawani

KUWAIT— Jordan on Sunday underlined the significance of speeding up efforts for formulating an Arab Customs Union to boost inter-Arab trade.

“The formation of the union is crucial to increase inter-Arab trade estimated presently at about 10 to 11 per cent,” Hatem Halawani, minister of industry, trade and supplies and acting foreign minister, told reporters Sunday on the sidelines of a meeting for foreign Arab ministers in preparation for the 25th ordinary Arab Summit.

The minister said the Economic and Social Council of the Arab League will refer to the Arab leaders during the summit a resolution that stipulates drawing a roadmap to complete and discuss all issues that need to be addressed before the launch of the union in 2015.

Plans for the Arab Customs Union were announced at the Arab League’s 2009 Arab Economic and Social Development Summit in Kuwait.

The establishment of the union is planned to lead to an Arab common market by 2020, and to increase inter-Arab trade and integration.

“Such a union is key for boosting trade in the Greater Arab Free Trade Agreement,” said Halawani.

One of the resolutions to be submitted to the Arab leaders entails creating an Arab joint electricity grid project.

“Jordan at present is connected to Syria and Egypt, if this project is implemented all Arab states will be connected by one electricity network, which will positively affect the involved countries,” said the minister.

One of the main obstacles facing the implementation of the project is lack of financing, he added, noting that the resolution calls for addressing this issue and urging Arab and international financing institutions to play their role in this regard.

One of the proposals urges countries that have financial capabilities to allocate necessary finance to connect all Arab states through a railway system, said Halawani.

Arab states, he added, are also expected to draft a strategy to enhance water cooperation and ensure water security, a matter, which he described as important and crucial to the Kingdom.

Proposals also include one to discuss creating an Arab investment zone, Halawani concluded.