Despite numerous attempts in the second half of the 20th century,
Arab states have not been successful in forming a regional economic
bloc. Trade among the Arab states continues to be hampered by high
tariffs and customs and transportation bottlenecks. Integration
efforts are largely limited to attempts at reducing trade barriers
in goods and have not extended to the service sector. While labour
mobility is somewhat evident, capital mobility within the region
remains limited. The ongoing liberalization of trade in goods
through the Greater Arab Free Trade Area, scheduled for complete
implementation in 2007, brings renewed interest to a longstanding
goal. regional integration. The contributors focus on three issues:
the failure of past attempts at integration, the impact on
countries involved in any future integration and the possible
lessons from other regional experiences, particularly the European
Union. A common theme is the importance of extending the reach of
cooperation efforts beyond trade in goods.
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