GAFTA is supposed to represent a step towards the economic integration among the Arab countries. However, after six years of work towards GAFTA, the inter-Arab trade moved from 9% in 1997 to 10% in 2005. The components of the production and the geographic allocations of the trade exchange did not vary much, and most of it is still focused on raw
materials. Some reasons behind this lack of progress can be referred to:
- The exceptions set on products maintained by some countries within the GAFTA
- The inefficiency in implementation of the agreement’s mechanisms, whether dispute
settlement or others
- Frequency of non-tariff barriers
- Discrepancies in policies of support and subsidization of local productions among
various Arab countries