Isaura Daniel*
São Paulo – How to equalise the differences among the Arab economies and put into operation the dreamed free trade area? This was one of the great topics of talks yesterday (14), during he 9th Arab Business Forum, which took place in Doha, Qatar, and brought together around 1,000 businessmen and political authorities from the region. Most of the Arab countries intend to implement, in 2006, a free trade zone.
Foreign tariffs between the countries will start being reduced next year until they reach zero, in ten years time. "There are also non-tariff barriers to trade between the countries, like quotas for specific products and bureaucracy. The countries also have different economic levels," stated the secretary general of the Arab Brazilian Chamber of Commerce, Michel Alaby, who accompanied the meeting, together with organization director Mustapha Abdouni. The group includes countries like Lebanon, Jordan, Egypt, Syria, Algeria and Morocco.
According to Alaby, of the US$ 243 billion that the Arab countries spend on imports each year, currently, just 25% come from the region. The secretary general believes that establishment of the zone may generate greater competition for Brazilian products, as it will increase trade between the Arab countries themselves. Products like fruit, which some of the nations participating in the group produce, may have their exports affected.
At the meeting yesterday, the businessmen also addressed the need for strengthening local capital markets so that regional funds are invested in the region. The Arabs currently have over US$ 1 trillion invested around the world. "If the capital market is strengthened, the tendency is for the funds to return to the region," explained Alaby. They also promised to send their governments requests to end the need for visas during trips between them.
The importance of providing incentives to technology transfer, according to Alaby, was another topic of discussion during the day. "They want to make more agreements with foreign universities," he said. Brazil, according to the secretary general of the Arab Brazilian Chamber, may benefit from this, sending students to study in the Arab countries and bringing Arab students to Brazil. "Trade and investments begin through culture," stated Alaby. It has been defined that the next forum will take place in Algeria, between September and October 2006.
Initial talks
Yesterday, the representatives of the Arab Brazilian Chamber met with the president of the Qatar Chamber of Commerce and Industry, Mohamed Bin Khalid Al-Mana. This was the first meeting between both organizations and was the first step to establish a relationship.
The representatives of both organizations showed themselves interested in the promotion of trade missions between both countries, according to the Arab Brazilian Chamber secretary general, and in the exchange of more information. "We discussed our availability to bring Brazilian businessmen to Qatar," stated Alaby.
*Translated by Mark Ament