In an attempt to highlight the significance of extending the Arab economic cooperation, the Canada Egypt Business Council, “CEBC” hosted a special event at the Four Seasons Nile Plaza Hotel on April 22.

Held under the title “The Arab World …A Future Vision”, the event drew a capacity crowd of more that 250 CEBC members, and distinguished guests, who gathered to discuss the dream of establishing a ‘ Joint Arab Market’ in light of the current economic agreements and partnerships taking place in the world.

Speakers included H.E. Amre Moussa, Secretary General, League of Arab States as a keynote speaker, Dr. Taher Helmy, Senior Partner, Helmy Hamza & Partners (Baker & McKenzie), Mr. Moataz El Alfi, Chairman El Alfi Foundation, as well as Mr. Hussien Shobokshi, President Shobokshi for Studies and Consultancy.

Mr. Motaz Raslan, CEBC’s Chairman began his opening remarks by signifying the role of the Arab integration, in all economic and political aspects that he explained would bring back the pride and prosperity to the Arab countries. The Arab unity will not come in a single step as a corollary of emotional consequence like what had happened in the Egyptian-Syrian unity in the sixties, he said, pointing out, that it should be done progressively depending highly on mutual economic alliance.

He emphasized the urgency to activate the role of Arab economic partnership and development between governments, which may construct mutual relationships, structuring stronger economic blocs that can protect our economies from the financial crises that are surfacing every now and then.

Mr. Raslan then mentioned that Arab countries should patch over their differences and avoid any obstacles and challenges impeding Arab inter-trade, services, and cooperation in investment, similar to other flourishing markets and international clusters as the European Union, and the NAFTA, that successfully managed to realize this, though they started years after us. The reason of their success, Mr. Raslan explained, is that they managed to put policy differences aside, and focus on common economic interests.

Raslan added that dealing with these challenges requires the adoption of a comprehensive development model based on sharing interests. Moreover, he finally explained that, the Agreement of the Arab Free Trade Area (AFTA) approved by the ‘Arab Economic Summit in Kuwait’,Nin January 2009, is considered, a first positive step towards achieving the Arab Economic Union, hoping it would lead to closer Arab action, bolster, and shore up efforts targeting Arab economic integration.

Mr. Raslan than gave the floor to H.E. Ferry de Kerckhove, Canada’s Ambassador to Egypt who started his speech by expressing the interest of the developed countries and especially Canada in expanding cooperation with the Arab League for attaining the ultimate goal of global as well as regional peace. He delved into the importance of joint Arab interests and efforts that can turn the region to a significant economic coalition with many partners in the global economy.

The Canadian Ambassador was then followed by Mr. Hussien Shobokshi, President Shobokshi for Studies and Consultancy who commenced by asserting that the “Joint Arab Market” is not feasible, unless based on real economic facts and not emotional steps.

He went on to criticize the low level of intra-Arab trade by portraying the fact that the volume of trade between the Gulf Arab countries and India are 10 times its trade with other Arab neighboring countries. He also added that the shipment cost of tons of paper from the Port of Suez to the Port of Jeddah is 7 times higher than the cost of similar shipment from Montreal to Jeddah. Mr. Shobokshi further argued that according to current situations, “Joint Arab Market” is currently unapproachable where there are no existing market fundamentals, structural integrity of products or quality measures and standards.

Mr. Moataz El Alfi, Chairman El Alfi Foundation, then shared his perceptive by elaborating that the volume of Arab trade does not exceed 8 percent of the world trade volume, which is considered a very modest rate compared to the situation in other countries. He also pointed out that there is a direct correlation between the political relations of the heads of Arab countries and the economic cooperation between these countries, asserting that, the more these inter-political Arab relations are improved, the closer we are from achieving our ultimate dream of a “Joint Arab Market”. Mr. El Alfi then called for the removal of barriers to trade that impede investment flows between Arab countries, pointing out that Egypt is still suffering from many economic obstacles.

Dr. Taher Helmy, Senior Partner, Helmy Hamza & Partners delivered his speech by stressing on the need to identify a number of economic incentives, referring to the declining contribution of manufacturing sector in the Arab gross domestic Product (GDP). He moved on to acknowledge the importance of increasing investments in infrastructure, especially when the success of the competition between the Arab states and major global economic blocs requires a strong infrastructure sector.

Dr. Helmy then delved into the main reasons that impede mutual Arab cooperation by referring to a report prepared by the “Egyptian Center for Economic Studies”, that highlighted the importance of the political management in devoting more political and economic incentives. The report, he added, underscored key interrelated challenges facing the region, including institutional reform, job creation, the reform of educational system, economic diversification, poverty alleviation, increasing food security, self-sufficiency besides water sufficiency within the existing environmental constraints.

To confront to current situation, Dr. Helmy suggested the launching of an extensive Arab development plan based on human as well as economic development, which can enable the Arab world to participate strongly in the global markets. He finally added that Arab cooperation must be more profound and not superficial where the world respects only power and success.

The Event’s Keynote speaker, H.E. Amre Moussa, Secretary General, League of Arab States then took the podium to deliver a forceful speech by calling for creating a forum within the Arab League that includes the neighboring countries of the Arab states, in order to increase mutual coordination and cooperation, while advancing interests shared by both the Arab and non-Arab states.

This forum, he added, will include 17 candidate countries including Asian, African, and even European countries besides the 22 member countries of the League of Arab States and will act as a medium for exchanging views in addition to coordinating policies within the Arab and neighboring countries, in the framework of this new regional order. He further added that the forum would be a great source of power for Arab countries as well, since it will compose fifth of the world’s countries as well as sixth of the world’s population and he urged the private sector to take a more significant part in this economic development.

He also noted that Turkey and Chad would be included among the forum’s member countries, pointing out that Chad is the only African country, which still sticks to the fact that Arabic is the official language of its state.

The Secretary General also warned the Arab countries form the risk of ignoring the Iranian nuclear program and stressed that it is time to open a dialogue with Iran, despite opposition from some countries. He further pointed out that this dialogue is an essence especially as it involves the regional security and the security of the Middle East. “Even though I realize the level of concern over Iran’s position, this does not negate the need for holding talks”, added H.E. Amre Moussa.

Moving to the role of the League of the Arab States in resolving conflicts within the member countries through confronting to the serious challenges and bridging the gap in views between the parties, Mr. Moussa emphasized that the Iraq’s elections and the progress in Sudan, could not have been possible without the serious efforts of the League of Arab States.

He then delved into the subject of Arab economic cooperation, stating the presence of high prospects of increased inter-Arab trade following the liberalization of trade envisaged under the newly established Arab Free Trade Area (AFTA), which would pave the way for the Arab countries to exchange trade. Mr. Moussa also opposed describing the Arab inter-trade relations as weak, stating that we have to take into consideration the steady increase in the number of Arab tourists within the region, as well as the increasing rate of Arab labor and investment flows within the Arab countries.

Conversely, he affirmed that the mismanagement of the Arab economies is the key cause for raising poverty and unemployment rates where he called for the adoption of broad development plans and funds, similar to the ‘Fund for Arab Economic Development’, that has been established, on the sidelines of the ‘Arab Economic Summit in Kuwait’. The fund, His Excellency explained, would finance small and medium projects, with a capital of $1.2 billion and will be run by Kuwait Fund for Arab Economic Development.

He also stated that the challenge facing Arab countries is not only to achieve high economic growth rates which are essential to reduce poverty, but to transform growth in a faster and more effective income redistribute policies.

Moreover, he added that the inter-economic relations between Arab countries are recently witnessing a breakthrough especially after the evolvement of outstanding Arab joint projects including the ‘Arab Power Link Projects’, besides other serious attempts as the ‘Gas Link Projects’, the planning of common roads, as well as projects for connecting the Arab world through railways network. “This is in addition to the establishment of the Arab Custom Union that will be completed by the year 2015, and would lead to an effective “Joint Arab Market” by the year 2010”, said the Secretary General. He finally concluded that such bilateral agreements between Arab countries would bring our ultimate goals of having an integral Arab cooperation closer to reality.

H.E. Amre Moussa, Secretary General, League of Arab States proceeded to answer questions posted by the audience on a number of vital topics covering the role of the Arab media in supporting joint Arab action, the interconnection, and integration within the forum of Arab state neighboring countries, the needed support to combat the Israeli in Jerusalem, and finally the Egyptian positive political move towards change.