A resolution was passed in 1957 to form an Arab economic organisation. The Economic Council of the Arab League then established a council with headquarters in Cairo, Egypt.
Members of Council of Arab Economic Unity [CAEU]
The Council of Arab Economic Unity [CAEU] met for the first time in the year 1964. Members of the Council of Arab Economic Unity include -
- United Arab Emirates
Significance of Council of Arab Economic Unity [CAEU]
The organisation was created to achieve economic integration within a framework of social and economic development and promote free movement for capital, labour, and services.
The Council of Arab Economic Unity had decided in 1964 to create an Arab Common Market, which these countries joined to promote the integration of Arab countries by lowering tariff rates. Though early efforts in the direction were not successful, newer proposals were made in the 1980s and 1990s.
Economic Integration & Unity
The Economic Unity Agreement passed in 1957 proposed the formation of the Council to integrate and organise economic relations among the Arab states on terms that were in line with the connections between them.
The Council was also supposed to offer the right grounds for flourishing the economies, developing resources, and contributing to the prosperity of the nations. The Economic Unity Agreement outlines how the members of the CAEU should establish relations with each other.
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Council of Arab Economic Unity - Organization Structure & It's Functioning
The organisation consists of the Council, Committees, and General Secretariat components. The Council is responsible for coordinating measures for unified administration, conducting studies about the market and commodities, performing studies for the formation of new federations and companies, helping with the integration of statistical terminology and data collection methods, and formulating programmes for the coordination of industry and agriculture and improvement of road and rail networks.
The Council is the chief policy-making component of the organisation, which comprises industry and economic and trade ministers. The Council comes together two times a year to discuss policies for the customs union.
The General Secretariat is in charge of implementing the decisions taken by the council, carrying out research, and compiling data. The present secretary-general of the organisation is Mohammad Ismail Al Rabea. The Greater Arab Free Trade Area (GAFTA) was formed in 1997 by 14 nations and run by the Economic and Social Council. Currently, GAFTA has eighteen member states.
FAQs on Council of Arab Economic Unity [CAEU]
Q1) What is the Agadir agreement, In the context of the Council of Arab Economic Unity [CAEU]?
Agadir Agreement was signed in 2004 to create a free trade zone between the member nations of the Council of Arab Economic Unity [CAEU].
Q2) Who is the secretary-general of the Council of Arab Economic Unity [CAEU]?
The Secretary-General of the Council of Arab Economic Unity [CAEU] is Mohammad Ismail Al Rabea.
Q3) Where is the headquarters of the Council of Arab Economic Unity [CAEU]?
The Council of Arab Economic Unity [CAEU] is headquartered in Cairo, Egypt.
Q4) What is GAFTA?
GAFTA or Greater Arab Free Trade Area agreement between 18 member nations to develop trade among Arab regions. It came into effect due to the Council of Arab Economic Unity [CAEU].
Q5) Is Jordan A Part of The GAFTA Agreement?
No, Jordan is not part of the GAFTA Agreement but is part of the Agadir Agreement with numerous member nations of the Council of Arab Economic Unity [CAEU].