Promising economic agendas for Doha summits

The Qatari capital of Doha plays host to two summits this week that could enhance economic prospects for Arab countries. The gatherings related to 21st summit of the Arab League besides the second gathering involving leaders of Arab and South American nations.

On Monday, the Arab League holds regular summit amid numerous socio-political challenges dealing with the Palestinian question, forthcoming parliamentary elections in Lebanon, violence in Iraq, the Iranian nuclear programme and the arrest warrant by the International Criminal Court against Sudanese leader Omar Al Bashir, the first of its kind for a sitting president.

Meanwhile, economic matters provide Arab leaders the opportunity to call the summit a success.

Amongst others, Arab governments need to renew their commitment to commencing a planned customs union in 2010.

Arab nations could speed up the process to achieve the result prior to the stated date of 2015. The initiative deals with customs and uniformity of trade with non-members.

At the moment, trading among Arab states is limited at best, hovering around 12 per cent of total foreign trade of Arab countries.

Several factors explain the low level of trading among Arab countries, notably geography.

The 22-member Arab League spreads over two continents, namely Asia and Africa. Nevertheless, increasing trade level among member countries from 12 to 20 per cent of total foreign trade of Arab countries requires dealing with non-tariff measures including bureaucracy.

Arab leaders need to address the problem of visa requirements, which tend to be cumbersome in some cases.

If successfully implemented, the customs union project should serve as a prelude to launching the common market scheme. Still the more ambitious common market project demands unrestricted movement of factors of production among Arab countries.

It is believed that a significant portion of trade among Arab countries takes place among Gulf Cooperation Council (GCC) states.

In turn, the matter reflects growing economic integration within the GCC by virtue of implementing a customs union project from 2003. The agreement requires adoption of a common external trade policy with non-members.

The GCC started the common market status in 2008, which in turn allows for free movement of factors of production among Saudi Arabia, the UAE, Kuwait, Qatar, Oman and Bahrain.

In many respects, the Doha gathering is the second of its kind involving Arab leaders in just over two months after the economic summit in Kuwait in January. The forthcoming Doha summit presents an opportunity to build on the economic agreements achieved in Kuwait, notably the planned customs union.

Another economic opportunity awaits the 22 Arab leaders when they meet their counterparts from South American nations. The gathering is only the second the one in Brazil in 2005.

The draft of "Doha Declaration" calls for cultural dialogue, cooperation in environmental issues, water resources, and combating desertification.

Another part of the draft deals with achieving sustainable development, strengthening scientific and technical cooperation and forging a partnership, notably through a common market. It is suggested that South American countries would propose establishing a free trade zone with Arab countries. However, the two sides would most likely agree on ways to facilitate investment opportunities as the starting point.

Some eight presidents and four vice-presidents from South America plan to attend the Doha summit. In particular, the meeting provides President Luiz Inacio Lula da Silva of Brazil the chance to present his country's position on Doha Round to free international trade. Launched in late 2001, the Doha Round remains deadlocked over the key issue of agriculture subsidy.

The writer is a Member of Parliament in Bahrain.