Why I am interested in this Term
For long, economic and political crises have engulfed the larger part of the Middle East region, with detrimental economic and human consequences. Today, a crescent of instability extends from Sinai to Libya, Palestinian territories, through Iraq, Syria and Yemen. As a whole, the Arab region continues to suffer low economic growth resulting from lower oil prices and regional conflicts. The relevance of regional economic integration and trade agreements in the Middle East is a persistent issue, especially in the angle of political and economic backwardness.
I am interested in studying this topic because the currently available studies demonstrate that regional integration in the Middle East has failed. These studies are shallow with flaws because they lack comprehensive and sufficient explanations for past failures. Some of these studies have tended to focus on borderless trade and custom union. Information on the emerging barriers to the Middle East region remains scanty and weak to bring to light in-depth data about the problems and prospects of the region.
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Explanation of the Key Term
Regional economic integration and trade agreements are a concept that refers to the agreements between different groups of countries in a region. The aim of these agreements is to reduce and eventually drop al tariffs and non-tariff barriers to free flow of goods, services and other production factors between these countries. In this report, the discussion will focus on regional economic integration and trade agreements in Middle East. The following are some of the essentials relevant to understanding this concept:
Middle East Free Trade Area (MEFTA). This refers to an agreement between the United States and countries of the Middle East to increase trade and investment with other nations in the world economy.
Trade and Investment Framework Agreements (TIFAs). This trade pact establishes a framework for expanding trade and resolving disputes between the Middle East and other world nations.
Bilateral Investment Treaties (BITs). a set of agreements that establish the terms and conditions for private by Middle Eastern nationals and companies in other countries.
Free Trade Agreements (FTAs) have proved to be one of the most successful ways to open up the Middle East to foreign markets. FTA is defined as a treaty between countries to eliminate trade barriers and promote free trade. Its primary purpose is to eliminate tariffs.
Major Article Summary
The major article is by Romagnoli & Mengoni (2009). In this article, the authors report that many countries in the MENA region have negative trade balances or depend on oil exportation to balance importations of goods and services. The authors observed 2011 brought about rigor that saw different kinds of FTAs discussed in the region. At the core of these discussions are the Efforts by the European Union to upgrade Association Agreements into Deep and ComprehensiveFree Trade Agreements (DCFTAs). In addition, there have been reviews and discussions of existing agreements in areas such as Jordan and Egypt. Today, Discussions have focused on the Continental Free Trade Area (CFTA)and MEFTA proposed by the business commission of Middle East.
The most important point in this article is that, while trade is crucial for economic growth and development in Middle East, it ought to be fair and not disadvantage other countries. Particularly big free trade agreements like DCFTAs and TIFAs) can generate adverse effects on vulnerable parts of societies. Hence, the Middle Eats must vet such agreements from a social-justice perspective. In this view, the two recommend it is important to study and discuss both the potential impacts of future agreements and the outcomes of the current ones.
The authors conclude that for most MENA countries, regional and bilateral trade agreements serve as a stepping-stone to a wider global trade agreement. Though bilateral, regional and multilateral trade agreements have been pursued in the region, many of them are yet to become operational or to achieve their originally intended goals. In addition, the authors conclude that trade unions and civil societies in these countries must design their interests and demands concerning social justice.
Discussion
Cited Work Relates To Above Explanation
The cited work is related to the above explanation because they in one or the other touch on the trade agreements brokered by countries in the Middle East. Notably, barrier entries have been cited as factors hindering trade activities in the region. Despite the many meetings geared towards unlocking the mystery, less has been achieved towards promoting the trading activities. The cited works indicate that, some of the countries such as Syria, Iran, and Iraq are always in constant conflicts, making it difficult for trade to thrive and realization of economic growth within the region. The work cited support the above explanations that economic integration with neighboring countries has been an effective growth component for many nations. through, free trade agreements, nations manage to establish common markets, custom unions and they achieve a single path towards greater regional integration.
How the Cited Work Relates To the Other 4 Works, You Researched
The above major article relates to the other four works cited in the sense that, they have vital information on achieving economic growth and the way free trade and food security can be achieved in the Middle East. The articles agree that, if the potential within Middle East can be harnessed, it will help to create jobs and generate the broad-based economic growth. Currently, trade agreements seem not to be working appropriately, as most nations within this region have failed to participate in trade, which has driven growth with the Middle East countries. Despite regional integration, some nations have failed to embrace the trade agreements. The articles observe that, numerous initiatives have been established in a bid to promote cooperation. Specifically, efforts have been made to create a common market between Kuwait, Saudi Arabia, Bahrain, Oman, and United Arabs Emirates. Although capital and labor has been flowing, it appears the trade agreements need to be revised to broker economic activities between Middle East nations.
References
Abedini, J. and N. Péridy (2008). "The Greater Arab Free Trade Area (GAFTA): an estimation of its trade effects." Journal of Economic Integration 23(4): 848-872. Retrieved from < https://vdocuments.mx/the-greater-arab-free-trade-area-gafta-an-estimation-pdfperidy- rabat-07pdf.html>
Boughanmi, H., Shammakhi, A., and Antimiani, A. (2016), “ Deeper Integration or Wider Integration?: The case of Gulf Cooperation Council”, Journal of Economic Integration 31(2): 206-233. Retrieved from https://www.e- jei.org/journal/view.php?doi=10.11130/jei.2016.31.2.206
Dabour, N. M. (2002). "The role of irrigation in food production and agricultural development in the near East region." Journal of Economic Cooperation 23(3): 31-70. Retrieved from http://www.sesric.org/files/article/135.pdf
Redding, S. and A. J. Venables (2004). "Economic geography and international inequality." Journal of international Economics 62(1): 53-82. Retrieved from <http://www.princeton.edu/~reddings/pubpapers/WincJIE2004.pdf>
Romagnoli, A. and L. Mengoni (2009). "The challenge of economic integration in the MENA region: from GAFTA and EU-MFTA to small scale Arab Unions." Economic change and restructuring 42(1-2): 69-83. Retrieved from <https://link.springer.com/article/10.1007/s10644-008-9058-0>
Satterlee, B. (2018). Cross border commerce (3rd Ed.). Raleigh, NC: Synergistics International Inc. ISBN: 9781934748176.
