TODAY’S TOPIC
The introduction on
Developing the Japan - United Arab
Emirates Relation beyond Oil
“ The possibility of creating an FTA
with Japan”
Prepared by: Khadija Abdulrahman
MY RESEARCH QUESTION


What is the UAE doing to retain and reinforce
the relations with Japan beyond oil?
This is essential to countries such as my country
UAE, whish depends heavily on Oil in its
economy and still willing to keep its economy as
stable even when oil is no longer available.
MY ASSUMPTIONS

As you all know that the United Arab Emirates is a rich country with Oil,
with strong economic relations with Japan based on Oil.
However: What will happen to such strong economic UAE-Japanese relations
when:
1.
UAE’S Oil runs out?
Does that
mean there will no longer be economic relations between UAE and
Japan?
2.
When Oil will not be as needed as it nowadays?
For Example there is shale technology in addition to the new competitive
sources of energy which are eco friendly like solar and wind and water
and so on.

Therefore in this research I will explore the possibilities and solutions to
retain strong economic relations with Japan even without Oil.
CONTENTS
 Introduction
to the UAE
 UAE Trade Relations with Japan
 Introduction to the GCC
 Examples of GCC FTAs
 Findings from the GCC FTAs
 Findings and Conclusions from this study
SIMILARITIES BETWEEN JAPAN & UAE
1. Both Countries are World Trade Organization (WTO) members, UAE
joined in 1996.
2. Both Japan and the GCC including the UAE have chosen Singapore as the
first FTA partner.
3. Both countries have forged a strong military and economic alliance with
the United States.
4. Both the UAE and Japan have their Islands occupied by foreign powers,
and seeking peaceful solution through negotiations and referral to the
International court of Justice.
o
o
Iran in the case of UAE.
Russia in the case of Japan’s Northern territories.
5
BRIEF INTRODUCTION TO UAE


The UAE is a federation of 7 Emirates which was
formed in December 2nd 1971, after their
independence from Britain.
The UAE is 43 years old and its seven Emirates are:
1.Abu Dhabi (the Capital)
2.Dubai
3.Sharjah
4.Ajman
5.Umm Al Quwain
6.Fujairah
7.Ras Al Khaimah.
United Arab Emirates (UAE) Location
7
UAE Location in
the middle east
8
The location of the 7 Emirates
9
FIGURE 1: POSITION OF UAE/GCC
The Arab League (22)
GAFTA (17)
GCC (6)
UAE
(7)
BRIEF INTRODUCTION TO UAE
Before the discovery of oil in early 1960s the UAE
did not exist.
 The UAE, along with Qatar and Bahrain has
been known as the trucial states because of the
19 century truce between the local Sheikhs and
the UK since 1820.
 Those areas were poor and under developed.
 Since that truce and until 1920s the areas main
industry was pearl diving.

UAE BEFORE OIL
12
UAE BEFORE OIL
13
BRIEF INTRODUCTION TO UAE


Right after UK withdrawal from the area, the ruler of Abu
Dhabi, who is the founder of the UAE formed a union with
the ruler of Dubai which was latter extended to the 5 other
emirates forming what is called now the United Arab
Emirates in 1971.
Since the discovery of oil the UAE has become a modern
state with high standard of living and oil drove the UAE's
economy.
AFTER OIL – VIDEO
UAE AFTER OIL
15
UAE - JAPAN TRADE RELATIONS

The first export of Abu Dhabi’s oil cargo was to Japan in 1962.

The first UAE’s oil cargo export to Japan was in 1973.

For Japan: UAE is the 9th trading partner

For UAE: Japan the 7th trading partner

For Oil supply: UAE is Japan’s 2nd largest Oil suppler after Saudi
Arabia with 25% of its total oil imports.
JAPAN’S OIL IMPORTS FROM THE UAE IN
2013
Unit by Barrel (million)
27
26.6
26
25.1
25
23.8
24
23
22.2
22.3
Apr-13
May-13
22
Month 2013
Unit by Barrel
January 2013
26.6 million
February 2013
23.8 million
March 2013
25.1 million
April 2013
22.2 million
May 2013
22.3 million
21
20
Jan-13
Feb-13
Mar-13
17
JAPAN’S OIL IMPORTS FROM GCC BY BARREL FOR THE
YEAR 2013
45
40
39.6
36.4
36.1
35
30
32
27.2
26.6
25.1
23.8
25
20
16.5
15.7
15
11
9.2
10
Saudi Arabia
22.3
22.2
14.8
8.9
6.8
UAE
Qatar
13.7
8.1
Kuwait
7.8
5
0
Jan-13
Feb-13
Mar-13
Apr-13
May-13
GCC Country
Jan-13
Feb-13
Mar-13
Apr-13
May-13
Saudi Arabia
39.6
27.2
36.4
36.1
32
UAE
Qatar
Kuwait
Total
26.6
15.7
9.2
91.1
23.8
11
6.8
68.8
25.1
16.5
8.9
86.9
22.2
14.8
8.1
81.2
22.3
13.7
7.8
75.8
18
JAPANESE OIL CONCESSION
ADNOC


WITH
The Abu Dhabi National Oil Company
(ADNOC) is the UAE’s National Oil Company
owned by the government and the President of
the UAE is the Chairman of the Supreme
Petroleum Council.
Japanese Companies such as: (JODCO, INPEX,
Cosmo oil, JX Nippon oil and energy,
TEPCO, Kansai Electric, Chubu Electric),
have shares and oil concessions with ADNOC’s
16 subsidiaries in the UAE.
19
ABU DHABI NATIONAL OIL COMPANY’S
(ADNOC)
16 SUBSIDIARIES
ADNOC
Gas Processing
Exploration &
Chemicals and
Refined Products
Production Services
Petrochemicals
Distribution
GASCO
IRSHAD
BOROUGE
ADGAS
NDC
FERTIL
AL HOSN GAS
ESNAAD
ADNOC Distribution
Exploring and
Production of Oil &
Gas
Maritime
Transportation
ZADCO
ADNATCO
ADMA-OPCO
NGSCO
Oil Processing
TAKREER
ADCO
ELIXIER
20
JAPANESE OIL CONCESSION
Company
Shareholders
WITH
Offshore Fields
Concession Expire
year
Umm Shaif
Lower Zakum
2018
Upper Zakum
2026
ADNOC 88.0%
JODCO (Inpex) 12.0%
Umm Al-dhalk
2018
ADNOC 60.0%
JODCO (Inpex) 40.0%
Satah
2018
Mubarras and others
2042
Japanese company
ADMA - OPCO
ZADCO
Operated by ZADCO
Operated by ZADCO
ADOC
ADNOC
ADNOC 60%
BP 14.67%
TOTAL: 13.33 %
JODCO (Inpex) 12.0%
ADNOC 60.0%
Exxon Mobil 28.0%
JODCO (Inpex) 12.0%
Cosmo oil 63.0%
JX 31.5%
TEPCO 1.8%
Kansai Electric 1.8%
Chubu Electric 1.8%
21
JAPAN’S GAS IMPORTS
2010-2013
FROM THE
UAE IN
Quantity of LNG delivered to TEPCO in Metric Ton
5,800,000
5,600,000
5,400,000
5,200,000
5,000,000
4,800,000
4,600,000
4,400,000
4,200,000
2010
Tax Year
2010
2011
2012
TOTAL 2011-2013
2011
Quantity of LNG delivered to TEPCO
in MT
4,822,062
5,722,012
5,575,422
16,119,495
2012
Value in US$
$3,484,320,576
$4,983,757,149
$6,306,383,518
$14,774,461,243
22
UAE GAS TO JAPAN





For liquefied natural gas (LNG) supply: UAE is a major exporter to
Japan.
During the earthquake and the tsunami that struck Japan in 2011,
Abu Dhabi Liquefaction Company (ADGAS ), provided 0.8 million
metric tons of liquefied natural gas (LNG) to Tokyo Electric Power
Company with grand total of LNG 5.7 million metric tons and value
of 4.983.8 million U.S. dollars.
ADGAS made a commitment to supply LNG to Tokyo Electric Power
Company until the end of March 2019.
However this has changed since June 2013, by the statement of H.E.
Mohammed Al Hamli- former UAE Minister of Energy that UAE is at
risk of becoming an LNG importer, because of its own steady growth
in population and electricity demand.
This was one of the reasons where I took interest into conducting this
research and start looking for other options which will still retain the
economic relations between UAE and Japan.
EXPLORING THE POSSIBILITY OF CREATING
AN FTA WITH JAPAN

In order to explore the possibilities of creating an
FTA with Japan, I will first need to research
about the UAE’s current FTA’s.
Finding # 1
From my research and the data collected I
discovered that:
 The UAE can not sign an individual FTA.
 The UAE is a member of the Gulf Corporation
Council (GCC) which their rules indicate that an
FTA can only be sighed between all the 6 GCC
members and another country therefore (6+1)
INTRODUCTION TO GCC


GCC stands for; Gulf Cooperation Council
The GCC countries are:
1.
2.
3.
4.
5.
6.
Kingdom of Saudi Arabia (KSA)
The United Arab Emirates (UAE)
Qatar
Kuwait
The Sultanate of Oman
Kingdom of Bahrain
The background of those days



From September 1980 to August 1988 the first Persian Gulf War
took place between Iran and Iraq.
This motivated the GCC countries which recently got their
independence from the UK consider a union that would protect
them from other powers such as Iraq and Iran.
Therefore right after this war started GCC was established in Abu
Dhabi on May 25, 1981.
GULF CORPORATION COUNCIL LOCATION
GULF CORPORATION COUNCIL LOCATION
GCC INTERNATIONAL TRADE

GCC is a Custom Union since 01 Jan 2003.

All GCC countries are members of World Trade Organization
(WTO).

GCC has many on going FTA negotiations.

GCC Signed FTA’s with Singapore, European Free Trade
Association (EFTA) and New Zealand.

GCC is also a part of the Greater Arab Free Trade Area (GAFTA)
28
LIST OF THE GCC FREE TRADE AGREEMENTS
AND ONGOING NEGOTIATIONS
Countries
Number of Rounds
Status
Singapore
4 rounds
December 2008 signed
EFTA
5 rounds
June 2009 signed
New Zealand
6 rounds
July 2007 signed by Initials
Japan
On going
Turkey
3 rounds since negotiations
started in September 2006
4 rounds
European Union
24 rounds
On going
China
4 rounds
On going
Turkey
4 rounds
On going
Australia
4 rounds
On going
South Korea
3 rounds
On going
India, Pakistan & Mercosur
2 rounds
On going
On going
29
WHAT ARE THE GCC COUNTRIES
STRATEGIES IN ESTABLISHING FTA?
Their Strategy is based on:
1. Collective negotiation between the GCC and other
countries aiming to find the best conditions and equal
circumstances in the international economic dealings
through a consensus between all 6 GCC members.
1.
Joint negotiation strategy in terms of goods, services,
IPRs, environment, labour standards and investments
with the business partners.
2.
Halal standards in trading products.
30
EXAMPLES OF GCC FTAS
1.
2.
GCC FTA with Singapore (GSFTA)
Greater Arab FTA (GAFTA)
CASE # 1:
FIRST FTA BETWEEN GCC &
SINGAPORE
32
WHY GCC HAS CHOSEN SINGAPORE TO BE
THEIR FIRST TO CREATE AN FTA WITH?
1. Singapore has a highly developed and successful free-market
economy.
2. It enjoys:
 Open and corruption-free environment
 Stable prices
 A GDP per capita which is higher than that of most developed
countries
3. Its economy depends heavily on exports.
4. In 2012, trade between Singapore and GCC countries reached
S$68 Billion Singapore Dollars, and trade between Singapore
and UAE in the same years reached S$25 Billion dollars.
5. Singapore has the Islamic Council for Halal Standards.
33
GCC FTA WITH SINGAPORE
(GSFTA)

The GSFTA was signed in Doha (Qatar) on 15 December 2008.
Objectives of forming GSFTA in terms of the GCC:


To enhance trade and economic relations and boost the investment ties.
To increase export opportunities for Gulf products, goods and services,
which will not include Singapore only, but extends to the East Asian
region due to the centre of Singapore which is a trade station and reexport center in the region.
GCC
Export
Singapore
34
TRADE BETWEEN GCC AND SINGAPORE
Countries
GCC Trade Volume with
Singapore (Year 2012)
Trade Volume % per
GCC country with
Singapore in 2012
Top Imports
(From Singapore)
Top Exports
(To Singapore)
Jewelry, Telephone Sets
and Precious Metals
Crude Petroleum,
Petroleum Products and
Gold
Oil Drilling Platforms,
Machine Parts, Refined
Petroleum
Crude Oil, Refined
Petroleum Products,
Plastics
Aero-plane Parts,
Electrical Machinery
Parts, Printing Machines
Parts, Jewelry
Refined Petroleum
Products, Raw
Aluminum, Methanol
(in $ million)
UAE
$25,500
37.2%
Saudi Arabia
$23,000
33.6%
$596
0.9%
Bahrain
Qatar
$9,800
14.3%
Boring/Sinking
Machinery and Bunker
Fuel
Petroleum Oils and
Mineral Oils
Kuwait
$6,200
9.1%
Civil Engineering
Equipment, Electrical
Products
Crude Petroleum,
Petroleum Products,
Processed Milk
Products
Oman
$3,400
5.0%
Petroleum and
Petroleum Products
Petroleum Products,
Civil Engineering Parts,
Electrical Machinery
$68,496
TRADE BETWEEN GCC AND SINGAPORE
GCC Trade Volume with Singapore (Year
2012) (in $ million)
Trade Volume % per GCC
country with Singapore in
2012
$30,000
$25,500
$25,000
$23,000
5.0%
$20,000
9.1%
$15,000
37.2%
14.3%
Qatar
Kuwait
$6,200
$5,000
0.9%
$3,400
$596
$0
UAE
Saudi
Arabia
Bahrain
Qatar
Saudi Arabia
Bahrain
$9,800
$10,000
UAE
Kuwait
Oman
33.6%
Oman
SINGAPORE ISLAMIC COUNCIL HALAL
STANDARDS



1.
2.
This GSFTA encourages a greater recognition of
Singapore's Halal standards in the GCC trade group.
The GCC have committed to recognise the Singapore
Islamic Council Halal Standards as the same standards in
their countries.
Benefits from this recognition of the Singapore halal
standards:
It will facilitate trade in halal products’ exports to the
GCC Countries.
It will increase tourism opportunities and travel as GCC
travellers will meet their dietary requirements when
travelling to Singapore.
37
THE TROUBLE OF DOMESTIC
ADJUSTMENT IN GCC


GCC-Singapore FTA has stopped as Saudi Arabia has
not yet ratified the convention.
According to the official report of the Saudi Arabia
embassy in Singapore, the reasons for not ratifying this
FTA was due to the fact that Singapore doesn’t treat all
the GCC countries equally in terms of visa granting.
For KSA residents they are required to obtain a visa to
entre Singapore while others GCC member such as the
UAE do not require a visa to Singapore.
38
CASE # 2: GREATER ARAB FREE
TRADE AREA
•
Introduction to the Arab League
•
The Greater Arab Free Trade Area
FIGURE 1: ELABORATION
The Arab League (22)
GAFTA (18)
GCC (6)
UAE
(7)
INTRODUCTION TO THE ARAB LEAGUE
Before I start exploring the Greater Arab Free Trade Area, I
will need to first introduce the Arab League as all the
members of this FTA are Arab league members.

The Arab League is a regional organization based on a
shared culture and one language “Arabic”.

This league was founded on March 22, 1945.


The main aim of this league is to help the Arab Countries
coordinates their policies and gain a united political voice
in the world.
The Arab league consist of 22 Arabic countries which are
all the Arab countries of the Middle East and North Africa
(MENA).
THE ARAB LEAGUE LOCATION
THE ARAB LEAGUE GENERAL INFORMATION



The population of the Arab League is about 320
million.
GDP growth at 5 percent, and of 8 US Dollars per
Capita.
The leagues members’ countries cover up to 14
million square kilometers.
THE ARAB LEAGUE FORMATION FROM A HISTORICAL BACKGROUND






If we go back to history we can understand clearly the meaning and idea behind creating such an
organization.
The Arabs always believed that they should have their own independent nation state since the Ottoman
Empire and the occupation of the Great Britain and France.
The establishment of this league was before the end of world war 2 and before the establishment of the
United Nation.
This was coming from the believe of the Arabs that they should stand together against the European
domination.
At first the league started with seven members which are Egypt, Syria, Lebanon, Iraq, Jordan, Saudi
Arabia and Yemen.
The other members at that time were not yet gained their independence. (The United Arab Emirates for
example joined in 1971 right after its independence from Britain and the united of the seven Emirates).

Egypt is the main founder of the Arab league and its head quarter is in Cairo.

At Jamal’s presidency the Arab League was very strong and was feared by many foreign powers.
JAMAL ABD AL NASSER INFLUENCES TO THE ARAB LEAGUE




Gamal Abdul Nasser was an Egyptian
revolutionist that successfully drove the
British out of his country after 72 years
of occupation.
Jamal became famous all around the
Arab Peninsula after standing firm
against the western nations and his
efforts of combining the Arab power to
battle against Israel.
Under his presidency Egypt came out
of intense poverty to prosperity.
In his presidency he nationalized banks
and industries.
JAMAL’S ECONOMIC INFLUENCE TO THE ARAB WORLD – SUEZ CANAL





In 1956 Jamal announced to World that he was
nationalizing the Suez Canal Company and
creating an Egyptian Canal Authority to manage
the Canal.
This Canal originally was planned by the French
however the British took over and finished its
construction.
The shares of this Canal was divided between
France, England and Egypt however the English
bought the Egyptian share as their country was in
debts, and latter on the British took full ownership.
It is important to mention that half of Egypt's
yearly national income is from this Canal.
By this time Jamal had become a hero in the Arab
world.
This Canal is very important for Trade due to the fact that it is the
only canal that connects the red sea with the Mediterranean
sea.
MORE INFLUENCES TO THE ARAB
WORLD




In addition Jamal constructed the Dam which
covers most of Egypt’s electricity needs and take
water to un irrigated lands.
Due to Jamal economic policies especially
construction of the Dam and the Canal; Egypt
emerged from poverty stricken country to a
prospering nation.
Moreover, in1958 Syria and Egypt united under his
presidency, forming the United Arab Republic,
hoping that one day all the Arab nations would join.
Sadly, the league lost its powers after Jamal’s death
and the Egypt-Syria union broke.
THE ARAB LEAGUE AND APEC
1.






2.
3.
The Arab League is similar to APEC.
What is APEC?
APEC is the Asia-Pacific Economic Cooperation.
APEC has 21 member countries.
APEC was established in 1989.
APEC seeks to promote free trade and economic cooperation
throughout the Asia Pacific Region.
APEC aims to raise living standards and educational level
through sustainable economic growth.
Therefore the differences between both is that APEC goals
are purely economical and the Arab League’s are purely
political with a goal of future economic corporation.
In addition, both organizations meetings mostly fail in
achieving their goals.
THE ARAB LEAGUE AND APEC
Similarities and Differences
Arab League 22
GCC 6
APEC 21
ASEAN
10
ARAB LEAGUE’S 22 COUNTRIES DATES
The Arab League
members
Date of Independence
of each member
Date of Joining the
Arab League
Egypt
1932
1945
Iraq
1932
1945
Jordan
1946
1945
Lebanon
1943
1945
Saudi Arabia
1932
Syria
1946
1945
1945
Yemen
1990 (reunited date)
1945
Libya
1960
1953
Sudan
1956
1956
Morocco
1956
1958
Tunisia
1956
1958
Kuwait
1961
1961
Algeria
1962
1962
Bahrain
1971
1971
U.A.E.
1971
1971
Oman
1650
1971
Qatar
1971
1971
Mauritania
1960
1973
Somalia
1960
1974
Palestine
N/A
1976
Djibouti
1977
1977
Comoros
1975
1993
THE ARAB LEAGUE HISTORY IN
FORMING TRADE AGREEMENTS

1.
2.
3.
4.
5.
6.
The Arab League has a long history of trying to foster trade and
economic cooperation among its member states, with several
initiatives taken in the 1950s and 1960s such as:
The1950 Treaty for Joint Defense and Economic Cooperation.
The 1953 Convention for Facilitating and Regulating Transit
Trade.
The 1957 Arab Economic Unity Agreement.
The 1964 Arab Common Market.
The 1989 Arab Cooperation Council.
The 1989 Arab Maghreb Union.
Those agreements have not been implemented and as a result to that;
trade barriers have remained high within the Arab region.
However,,
 In 1981, an agreement to facilitate and promote inter-Arab trade was
signed.
ESTABLISHING THE GREATER ARAB FREE
TRADE AREA (GAFTA)




In February 1997, the League decided to create an
Arab Free Trade Area, also known as the Greater
Arab Free Trade Area or the Pan-Arab Free Trade
Area.
This agreement came into force on January 1998 and
to be completed by 2008.
This GAFTA would be achieved through a 10%
reduction in customs fees each year as well as the
gradual elimination of trade barriers.
18 of the 22 Arab League states signed this
agreement.
ARAB FREE TRADE AREA MEMBERS


This GAFTA has 18 members
The first 17 members entered this agreement in 1997,
after that in 2005 Algeria followed.
Those members are:
1.
Jordan
2.
Palestine
3.
United Arab
Emirates
4.
Kuwait
5.
Qatar
6.
Yemen
7.
Lebanon
8.
Saudi Arabia
* ALL GCC COUNTRIES
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
Bahrain
Libya
Sudan
Egypt
Morocco
Syria
Iraq
Oman
Tunisia
Algeria
ARE MEMBERS OF THIS
GAFTA
GAFTA MEMBERS AND WTO

Only 10 members of the 18 GAFTA members are also
members of the world trade organization (WTO).
Those members are:
1.
United Arab Emirates (10 April 1996)
2.
Kuwait (1 January 1995)
3.
Qatar (13 January 1996)
4.
Bahrain (1 January 1995)
5.
Saudi Arabia (11 December2005)
6.
Oman (9 November 2000)
7.
Morocco (1 January 1995)
8.
Egypt (30 June 1995)
9.
Jordan (11 April 2000)
10.
Tunisia (29 March 1995)


The other GAFTA members are observers in WTO.
GAFTA PROCESS






Based on the Decision No. 1317 D 59 by the Economic and
Social Council at the meeting held on 19 February 1997, a
timeline was set to the establishment of an Arab Free
Trade Area.
The Time line sit for the GAFTA was from1/1/1998 to
1/1/2008.
This Agreement entered into force on 1/1/1998.
By 2002, 17countries has signed this GAFTA, and by
2005, 18 countries has signed.
During the liberalization process member countries were
able to exclude from tariff reductions certain agricultural
products depending on the production season.
In January 2005, the elimination of most tariffs among
the GAFTA members was enforced.
CONDITIONS OF THE GAFTA



Gradual reduction in tariff rates, at an annual rate of 10% intra trade starting on
1/1/1998.
The possibility of exempting a number of products based upon a decision of the
Social and Economic Council of the Arab League.
Application of the “Agricultural Calendar” given the following conditions:
1.
Maximum of ten products to be included on the list per country.
2.
The maximum time allowed for a listed product to remain on the calendar
is 7 months per year.
3.
Products included in the calendar do not benefit from the gradual
reductions in tariff rates during specific seasons.
GAFTA BENEFITS
According to the Saudi Arabian Embassy in Tokyo report 2008:
This GAFTA is beneficial as it covers all the Gulf Cooperation
Council and the Arab League countries.
1.
It includes the removal of tariffs facilitating trade between
all members.
2.
It decreases the flow of smuggled goods which harm local
productions.
3.
It encourages the movement of natural personal (intra
between its member countries only).
DATA FROM ARAB MONETARY FUND
- FIGURES IN US MILLION $- 2008
1990
1995
Total External
Ratio IAT-TET
Trade
Total InterArab Trade
2000
Country
Total InterArab Trade
Total External
Total InterRatio IAT-TET
Trade
Arab Trade
Total External
Ratio IAT-TET
Trade
Jordan
1.056
3.504
30.1%
1.496
5.467
27.4%
1.081
6.496
16.6%
UAE
2.236
33.389
6.7%
3.291
52.389
6.3%
6.682
82.879
8.1%
Bahrain
2.203
7.547
29.2%
2.169
7.83
27.7%
1.967
10.312
19.1%
Tunisia
775
9.684
8.0%
991
13.676
7.2%
1.151
14.229
8.1%
Algeria
469
20.689
2.3%
560
21.042
2.6%
553
29.223
1.9%
Saudi Arabia
5.772
68.498
8.4%
6.473
78.128
8.3%
9.249
109.055
8.5%
Sudan
535
1.819
29.4%
537
1.789
30.0%
535
3.359
15.9%
Syria
937
6.602
14.1%
1.298
8.595
15.1%
1.357
9.072
15.0%
Somalia
111
545
20.4%
185
447
41.4%
146
576
25.3%
Iraq
1.578
16.839
9.4%
714
1.089
65.5%
1.05
16.843
6.2%
Oman
3.581
8.235
43.5%
2.142
10.313
20.8%
3.359
16.694
20.1%
Qatar
386
4.988
7.7%
572
5.609
10.1%
1.269
14.779
8.6%
Kuwait
535
12.231
4.3%
1.263
20.616
6.1%
1.44
27.193
5.3%
Lebanon
643
2.972
21.6%
733
7.376
9.9%
1.058
6.944
15.2%
Libya
792
19.541
4.0%
1.135
13.697
8.3%
1.04
16.095
6.5%
Egypt
481
11.801
4.0%
924
15.18
6.0%
1.919
18.469
10.4%
Morocco
1.405
12.142
11.6%
1.145
13.245
8.6%
1.008
20.375
4.9%
Mauritania
27
857
3.2%
37
1.214
3.0%
35
1.095
31.9%
Yemen
552
3.946
13.9%
738
3.521
20.9%
1.045
6.418
16.3%
TOTAL
24.073
245.829
9,79 %
26.404
281.225
9,39 %
34.107
410.106
8,32 %
DATA FROM ARAB MONETARY FUND
- FIGURES IN US MILLION $- 2008
Year
1995
1990
2000
Country
Total InterArab Trade
Total
External
Trade
Total InterArab Trade
Total
External
Trade
Total InterArab Trade
Total
External
Trade
UAE
2.236
33.389
3.291
52.389
6.682
82.879
Tunisia
775
9.684
991
13.676
1.151
14.229
Saudi Arabia
5.772
68.498
6.473
78.128
9.249
109.055
Lebanon
643
2.972
733
7.376
1.058
6.944
TOTAL
24.073
245.829
26.404
281.225
34.107
410.106
TOTAL INTER-ARAB TRADE AND TOTAL EXTERNAL
TRADE
- FIGURES IN US MILLION $ -
450
400
350
410.106
300
Total External Trade (1990)
Total Inter-Arab Trade (1995)
250
200
281.225
245.829
100
24.073
26.404
0
TOTAL Arab Trade
Total External Trade (1995)
Total Inter-Arab Trade (2000)
Total External Trade (2000)
150
50
Total Inter-Arab Trade (1990)
34.107
THE GAFTA AFTER 2008?



There are no registered data on what is the development
made on this GAFTA after the year 2008.
According to his Excellency the ambassador of Egypt in the
UAE, he stated that due to the Arab spring and the
unstable political situations in the region temporally
stopped this FTA.
He stressed that members of this GAFTA are members of
the Arab League which aims to serve as political entity
making it difficult to isolate the effects on their trade
agreements.
LAST UPDATE REGARDING THIS GAFTA IN
THE ARAB SUMMIT IN DOHA IN MARCH 2013

In this meeting held in Qatar:
1.
The members wish to have a final agreement on
the full implementation of this GAFTA by 2015.
2.
A proposal for this agreement was completed by
the Arab Economic and Social Council and it just
requires the approval of the Arab leaders.
CONCLUSIONS ON GREATER ARAB FTA

This GAFTA make the Arabs look united as most of this
GAFTA members are in MENA with important advantages
on two levels:
1.
locally within the GAFTA region; by improving living
standards and strengthening their economy.
2.
Internationally with the rest of the world; more
investment with all the GAFTA members and exploring
further trade opportunities.
PROBLEMS FROM GCC-FTAS APPLICABLE TO
JAPAN

From studying the case of GCC-FTA with Singapore and
conducting several interviews with ambassadors in GCC
embassies in Tokyo. There are two problems to solved before
the possibility to create Japan/GCC FTA;
1. Japan does not give diplomatic equality to all the GCC
countries yet. For example; the visa issues. Therefore Japan
needs to apply its rules equally to all GCC six countries.
2. Japan does not have Halal standards yet.
BENEFITS FROM GCC-FTAS APPLICABLE
TO JAPAN

Allows domestic exports of Japan to reach the six markets
of GCC countries without tariff and vies versa.
Brings freedom for Japanese companies to work in all the
six GCC countries in many areas;
- In directly (through Dubai) before the FTA
- Directly (to all GCC Countries) after the FTA

CONCLUSIONS – GCC /JAPAN FTA
1. GCC countries are similar in terms of their wealth (oil) and future
challenges, therefore signing an FTA with Japan will be one of the
options that will retain their economy once their Oil runs out.
Especially that Japan depends on the GCC countries for more than
70% of its total oil needs which means those GCC countries depend
heavily on oil with Japan to boost their economic relations with
Japan.
2. GCC believes in the message behind the Arab League and promoting
an Arabic unity between its members therefore:
Singing an FTA with Japan will also resulted in improving the
current situation of the GAFTA where more job opportunities will
be available in addition to new possibilities of acquiring highly
advanced technology.
Therefore this FTA with Japan will not only serve GCC but will
also serve the Arab League indirectly.
3. An FTA is also an opportunity for Japan and UAE to team up their
researchers to develop new technologies for creating supply out of
shale and other sources of energy (wind, solar, ..etc), therefore the
establishment of a possible collaboration between both countries
Japan & UAE over new oil/energy development technologies.
REFERENCES


The official website of the Ministry of Industry and Trade of Jordan on
http://www.mit.gov.jo/Default.aspx?tabid=732
The official website of Egypt ministry of Trade and Industry
http://www.tas.gov.eg/English/Trade%20Agreements/Countries%20and%20Regions/Middle%20East
%20and%20North%20Africa/gafta

http://www.tas.gov.eg/NR/rdonlyres/164E81D4-27BB-4D63-9DA7-33C8A315ACFF/1074/Gafta2.pdf

The official website of GCC http://www.gcc-sg.org/eng/

The official website of WTO http://www.moft.gov.ae/wto/

The Official website of the ministry of economy http://www.uaetrade-usa.org/index.php

The official website of the Ministry of foreign Trade in UAE http://www.moft.gov.ae/en/

The report from The UAE Ministry of Foreign affairs 2005.

The Oman Embassy in Singapore

YOMIURI and NIKKEI newspapers article published in 5 June 2013 on EK

Emirates 247 article on http://www.emirates247.com/business/economy-finance/uae-japan-tradegrows-14-5-2012-09-26-1.477073

The official website of the Marriage fund http://zawaj.gov.ae/en/

The official website of AbuDhabi Yas Island http://www.yasisland.ae/

The GCC Common Market’s facts and figures, the fifth annual statistical report issued by GCC
Secretariat http://thediplomatmagazine.com/headlines/uaes-trade-with-gcc-rose-to-85b/
REFERENCES

The UAE embassy in Tokyo

The Qatar Embassy in Tokyo

The UAE embassy in Singapor










The European institute for research MEDEA official website
http://www.medea.be/en/themes/economy-and-trade/arab-free-trade-area-afta/
The GCC Common Market’s facts and figures, the fifth annual statistical report
issued by GCC Secretariat http://thediplomatmagazine.com/headlines/uaes-tradewith-gcc-rose-to-85b/
The article published in The Cairo Times, Vol 2, Iss 5, 2005.
Al YAUM Times online article on http://gulfmailonline.com/2013/05/11/free-tradeagreement-could-further-boost-inter-arab-trade/
Arab Times news article on http://www.arabnews.com/news/451429
The report issued by the Diplomatic Center for Strategic Studies, entitled: GCC free
trade with global conglomerates, UAE in July 2009.
The official website of the Ministry of Foreign Singapore: www.mofa.gov.sg
The Official website of ADNOC, www.adnoc.ae
The report from The UAE embassy in Singapore on the Impact of FTAs on
Singapore's Domestic Exports of Goods 2009.
The report issued by the Diplomatic Center for Strategic Studies, entitled: GCC free
trade with global conglomerates, UAE in July 2009.
THANK YOU FOR LISTENING
ANY QUESTIONS ?
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