Trade levels between member nations of the Agadir Free Trade Agreement can improve with more private-sector participation, ministers say.
More businesses in the private sector need to participate in the Agadir Free Trade Agreement (AFTA), Maghreb and Arab finance ministers said at a February 17th-18th meeting in Rabat.
AFTA, which includes Morocco, Tunisia, Egypt and Jordan, has struggled to achieve its targets since its 2004 inception. Regional trade ministers founded AFTA to encourage trade in agricultural and industrial products and integrate regional economies.
Private-sector businesspeople have not been encouraged to take advantage of the trade benefits offered by AFTA, Morocco Foreign Trade Minister Abdellatif Maâzouz told Magharebia on Thursday (February 18th). AFTA participants should reach out to private businesspeople to increase their participation, he added.
Businesspeople are missing out on a number of opportunities to build a solid regional economic hub, said Arab trade ministers at the meeting.
The general secretary of the Jordanian Trade and Industry Ministry urged more dialogue with private-sector business leaders.
"We would welcome businessmen explaining to us what they want to get out of the agreement so that we can move forward," said Mountassir Aqleh.
Trade levels between AFTA partners have remained very low despite the agreement. For Morocco, trade with partners only increased by 1.8% in 2009, rising from 6.5 billion dirhams in 2008 to 6.84 billion dirhams in 2009.
"The volume of bilateral trade between the countries concerned is just 3% of trade with the rest of the world, and yet the percentage is 6% for countries belonging to the Gulf Cooperation Council and 10% for countries in the West African Economic and Monetary Union," said Maâzouz.
AFTA is at a critical stage in its development, according to Tunisian Trade Minister Reda Ben Mesbah. It is hoped that the agreement can be expanded into an Arab free-exchange region while increasing the amount of foreign investment, he added.
Another obstacle to growth among participants is the absence of Algeria. Though all Arab countries that hold trade agreements with the EU are eligible to join AFTA, Algeria has not.
Mohamed Fanari, an economist, said that Morocco and Tunisia would both benefit from the inclusion of their neighbour in the trade agreement.
"The Maghreb countries are rich in natural resources and skills," he told Magharebia on Thursday. "Setting up a strategic co-operation policy could guarantee positive complementarity, allowing the region's economy to flourish."
Trade ministers also agreed to co-ordinate relations with the EU and the World Trade Organisation, while working to offer membership in AFTA to more Mediterranean countries.
By Siham Ali
© Magharebia.com 2010
