Enhancing trade through less rigid border restrictions

In the past 10 years, technological advancement in telecommunications and the exchange of information led to removing barriers that hindered the growth of economic and commercial ties among countries.

The internet and telecom revolution now allow easy access to economics, culture and scientific research within a few seconds. These tremendous developments have resulted in the robust growth of global economies and spread of knowledge and culture across the world, where hundreds of millions of people have largely benefited from these advancements.

The negative impacts of information technology and telecom revolution have been limited and are possible to control.

Countries all over the world have come closer with open skies, despite borders still existing on the ground, even within harmonious geographic groups. Europe, however, has removed borders amid a joyful and optimistic atmosphere that new opportunities will be on offer for European citizens to develop their business activities within this significant economic group and its major markets.

Although we cannot imagine that borders would brought down between countries within the Arab Maghreb Union, Gulf Cooperation Council (GCC) and in the Levant, as well as the Indian sub-continent and Latin America, such a move can be possible, and offer economic benefits and significant gains.

The successful experience of the European Union (EU) and the GCC are the best examples for such groups. For instance, there were fears about the possibility of reaching a unified customs tariff within the Gulf bloc, which led to delaying this union for more than 10 years.

Yet, the adoption of the unified customs tariff by GCC countries in 2003 led to increasing border trade among them from six per cent to 12 per cent.

The common market, which was established earlier this year, raised similar fears, yet developments confirmed once again the positive impacts of such a move on the economies of GCC countries.

Fears

Despite these successful experiences, business people still have fears about the negative effects, such as the GCC single currency, unifying laws, opening financial markets and ownership of shares.

However, such fears are not based on scientific studies or logical grounds, but are mere personal speculation and perceptions.

The European Central Bank enjoys complete independence, and is not subject to any authority other than its own highly powerful professional mandate, which takes into consideration the interests of the EU member states.

The positive outcomes achieved by GCC countries, including the Free Trade Zone, Customs Union and the Common Market, are the best examples and constitute a powerful driving force to push forward the Gulf economic union without unjustified fears.

The Gulf agenda includes many forms of cooperation and coordination, and will lead to supporting efforts by the GCC countries to diversify their sources of income.

GCC countries are planning to develop the tourism sector by taking more steps such as the single currency, the common GCC visa, which are expected to effectively contribute to easing the movement of tourists among GCC countries.

The tourism sector has become one of the most important sources of the Gross Domestic Product (GDP) of many countries around the world.

The writer is a UAE economic expert.