Greater Arab Free Trade Area (GAFTA)

The Greater Arab Free Trade Area entered into force in 1998. It provides for the gradual elimination of border tariffs, as well as original non-trade barriers, among its 18 signatory countries, including for:

• Steel and Iron
• Raw Aluminium
• Steam Turbines
• Electric generating sets and rotary converters Generating sets with compression-ignition internal combustion piston engines (diesel or semi diesel engines)
• Electrical transformers, static converters (for example, rectifiers) and inductors; parts thereof
• Waste and scrap of primary cells, primary batteries and electric accumulators
•  Self Propelled vehicles

Signatory countries can however determine specific national import restrictions based on the prohibitions listed by the Economic and Social Council of the League of Arab States for security, religious, health or environmental reasons.

Rules of origin determining if products may benefit from preferential tariff treatment are based on on a minimum 40% local added value threshold (eg. non-originating material should represent less than 60% of the total price of the final product), as well as on the provision of a certificate of origin, and on direct shipment and invoicing conditions.

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