Though mutual trade has been an obsession among Arab countries for several decades, the volume of inter-Arab trade has never risen above nine percent according to the latest statistics. The Arab governments have once again agreed to take the necessary economic measures to improve the situation. Unfortunately no effective steps have ever been taken to tackle the issue on a practical level. Normally, these agreements to boost inter-Arab trade are followed by the Arab press exhorting businessmen to import goods from their Arab brothers rather than from non-Arab countries. With unbelievable naivete, Arab journalists will proceed to ask why Arab businessmen import furniture from Italy instead of Egypt, why canned food is imported from the United States instead of from an Arab country. The journalists then remind the businessmen of their duty and loyalty to help other Arab businessmen and manufacturers who are, after all, related to them by race, language and religion. The journalists next demand that their fellow Arab businessmen help other Arab countries strengthen their economies instead of enriching outside ones such as Japan or the US. The chorus is swelled by Arab academics who seize the opportunity to say that it is high time to transform noble verbal principles of brotherly cooperation among Arab countries into tangible action so that all brotherly Arab peoples will share in the benefits. On the other hand, there are economists who attribute the failure of inter-Arab trade to ineffective measures taken by Arab governments who seem unable to grasp the implications of changing concepts of international trade, marketing trends and economic climates. All the joint efforts and measures they have taken over the past 10 years has done nothing except maintain the level of trade at 9 percent. The situation has led to several economists who are unconnected to the policymakers to come up with several ideas for promoting inter-Arab trade. Their studies have also identified various practical difficulties that obstruct and hinder Arab trade.
All the markets should be liberated from out-dated economic theories, empty promises and unimplemented agreements. They should take strong and effective steps to face today’s stark market realities.
Apart from opening up their markets to other Arab countries, there should be guarantees of customs exemptions, simplification of trade formalities and agreements on standards of quality. Production techniques have to be updated with the objective of bringing up quality to an acceptable international level. What will help Arab economies is if their products are recognized to be of a high standard. Only quality products at competitive prices can withstand competition from the rest of the world. And then only will the dream of mutual trade be achieved. One leading Arab economist also recommended the following steps to change the current situation.
1-Set up a local fund to help importers and exporters to simplify the settlement of mutual trade payments.
2-Set up a regional fund under the Arab Monetary Fund or in one of the Arab Central Banks to settle regional payments between the Arab countries in local currencies.
3-Introduce a new Arab currency to be called the Arab Dinar.
4-Set up a new credit system for speedy currency clearing.
Unfortunately there are too many economists and intellectuals occupying influential positions thinking as they did 30 years ago. They seem completely unaware of the rapid changes taking place all over the world in economic concepts, marketing techniques and consumer trends. It is time for us here in the region to stop talking and start acting. We ought to set up inter-Arab businesses and industries aimed at being successful in international marketing.