Greater Arab free trade Higher hydrocarbon prices boost surplus

Ho w e ve r mo s t o f th e in cre a s e is th e re s

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Unformatted text preview: ro n g tra d e g ro w th o f o ve r 2 0 p e rce n t. Ho w e ve r, mo s t o f th e in cre a s e is th e re s u lt o f h ig h e r h yd ro ca rb o n p rice s ra th e r th a n in cre a s e s in th e re a l vo lu me o f tra d e , a cco rd in g to Q NB Gro u p . GAFTA h a s a h ig h tra d e s u rp lu s ve rs u s th e re s t o f th e w o rld w ith e xp o rts to ta lin g $ 1 .2 trillio n in 2 0 1 2 a n d imp o rts $ 0 .8 trillio n . Th e tra d e s u rp lu s o f $ 4 0 0 b illio n in 2 0 1 2 , o r a ro u n d 1 5 p e rce n t o f GAFTA GDP , h a s g ro w n s te a d ily s in ce 2 0 0 9 w h e n it co n tra cte d to $ 6 4 b illio n a s o il p rice s a ve ra g e d lo w e r. GAFTA h a s b e e n in fo rce s in ce 1 9 9 8 a n d a ims to s u p p o rt e ffo rts to e s ta b lis h a n Ara b co mmo n ma rke t to e n co u ra g e in tra -re g io n a l tra d e a n d e co n o mic u n ity. It a ims to h e lp a ch ie ve th e s e g o a ls b y re mo vin g b a rrie rs to in tra -re g io n a l tra d e , p rima rily b y cre a tin g a cu s to ms u n io n a n d cu ttin g cu s to ms d u tie s . Un d e r th e a g re e me n t cu s to ms d u tie s w e re e limin a te d w ith in GAFTA in 2 0 0 5 , b u t th is d o e s n o t a p p ly to a ll g o o d s a n d s ig n ifica n t n o n -ta riff b a rrie rs re ma in in p la ce . Acco rd in g to Q NB Gro u p , a ke y in d ica to r fo r th e s u cce s s o f Ara b e co n o mic in te g ra tio n is th e s h a re o f tra d e o f co u n trie s w ith in GAFTA w ith th e ms e lve s re la tive to th e to ta l tra d e o f th e s e co u n trie s w ith th e re s t o f th e w o rld . Th e GAFTA tra d e s h a re ro s e fro m 9 .3 p e rce n t o f th...
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