Development and building trade capacity
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Best practices in WTO accession for Arab countries
Lessons from past and ongoing accessions in the Arab world
International trade plays a critical role in driving growth and development but the Arab world remains less integrated than other regions into the multilateral trading system. Only 14 of the 22 Arab League countries have joined the WTO while many of the remaining countries are engaged in lengthy and complex accession negotiations. The path towards WTO membership has confronted Arab economies with a mix of legal, economic and political hurdles, highlighting the need for broad-based reforms and stronger institutional capacities. This publication offers policymakers and stakeholders in the Arab world a practical roadmap for achieving successful WTO accession and implementing effective post-accession reforms. Drawing on the experiences of Arab countries that have joined the WTO since 1995 - including Comoros, Jordan, Oman, Saudi Arabia and Yemen - as well as those currently in the accession process, it addresses the challenges faced throughout membership negotiations. The publication explores how WTO accession reshapes policy, regulatory and institutional frameworks and presents recommendations on developing strategies to fully leverage WTO membership and technical assistance. Based on high-level consultations, extensive interviews and comprehensive policy analysis, this publication provides essential insights into how to advance sustainable economic development and reinforce regional stability across the Arab world.
Conclusion and way forward
Executive summary
This study, Best Practices in WTO Accession for Arab Countries underscores the important role of international trade in fostering economic growth in the developing world, emphasizing the noticeable underrepresentation of the Arab League countries within the WTO.
Acknowledgements
The publication Best Practices in WTO Accession for Arab Countries was prepared by Hamid Mamdouh and Dr. Linda Kassem, lead experts under the general responsibility and guidance of Maika Oshikawa, Director of the Accessions Division, World Trade Organization (WTO); May Ali Babiker, Director of the Cooperation and Capacity Development Department, Islamic Development Bank (IsDB); Mamoudou Sall, Assistant Director General of the Islamic Centre for Development of Trade (ICDT); Dr. Jaleleddine Rejeb, Director of the Economics Department, Arab Monetary Fund (AMF).
Introduction
The importance of international trade as an engine for economic growth and development across the developing world continues to increase.
Trade and income convergence
The past quarter of a century has witnessed an unprecedented level of income convergence, accompanied by the integration of many developing economies into global markets. Despite this, some economies have been left behind. This chapter discusses how the participation of developing economies in global trade and investment flows can accelerate structural transformation and enhance productivity growth, thereby helping lowand middle-income economies to achieve the economic growth that ensures convergence with high-income economies. The chapter also examines why some economies have taken little advantage of globalization, and focuses on barriers to maximizing the gains from trade participation, such as trade costs and commodity dependence. Finally, the chapter discusses how recent trends in the global economy are shaping future opportunities and challenges for developing economies to leverage trade and foreign direct investment for economic growth, and which policies can help to achieve convergence in the upcoming decade.
Note
WTO members are frequently referred to as “countries”, although some members are not countries in the usual sense of the word but are officially “customs territories”.
Conclusions
Over the past 30 years, the world has witnessed a period of unprecedented income convergence, accompanied by a steep reduction in poverty, but inequality remains high.
World Trade Report 2024
Over the past 30 years, the world has witnessed a period of unprecedented income convergence, as the wide gap in income levels between economies has narrowed. Economic growth has improved living conditions and prospects for many people around the world. However, not all individuals, regions and economies have benefited equally from the changes brought about by more open trade. The World Trade Report 2024 explores the complex interlinkages between trade and inclusiveness across and within economies. Openness to international trade can drive economic growth, but many low- and middle-income economies struggle to diversify or to integrate into world trade. Although trade supports numerous jobs and provides access to affordable goods and services, some individuals can face challenges in adapting to new economic conditions following trade openness. However, trade protectionism neither protects the overall economy, nor promotes inclusiveness within economies. Diversifying global value chains, reducing trade costs through digitalization, and transitioning to a low-carbon economy can create new opportunities for low- and middle-income economies. Addressing remaining barriers to trade and investment, facilitating the implementation of existing WTO agreements, and ensuring that the WTO is fit for new challenges are crucial to support inclusiveness across and within economies. Furthermore, trade policies need to be complemented by domestic measures, such as labour, education and competition policies, so that the gains from trade can flow to workers and consumers, and so that those individuals can move to benefit from those gains. WTO cooperation with other international organizations can magnify combined action on inclusiveness across and within economies.
Inclusive trade and international cooperation
This chapter discusses how the multilateral trading system has helped some economies to take advantage of trade to further their development, but has not succeeded in helping others to harness trade for growth and considers what could be done to ensure that the WTO leaves no economy behind. It also examines the effect of the WTO on how the benefits of trade are shared out within economies, and discusses how the WTO and trade can be made more inclusive for people and firms. Finally, the chapter outlines the areas in which work at the WTO could be coordinated with work at other international organizations to help make trade more inclusive, such as by enhancing infrastructure and digital connectivity to bridge the digital gap or by ensuring coherence between trade and environmental policies.
Executive summary
Never before have the living conditions and prospects of so many people changed so dramatically in the space of a few decades.
Trade and inclusiveness within economies
Trade has raised aggregate welfare and reduced poverty without necessarily raising inequality in many economies, but the impact of trade is more complex for individuals. People may benefit from cheaper prices, larger variety and export opportunities, but they may also face increased competition and may, therefore, either gain or lose from trade. This chapter reviews why, although most people gain from trade, some suffer losses. These losses can be aggravated by distortions and barriers, such as mobility costs or monopolies, that tend to impact more vulnerable groups disproportionately, and may prevent them from adjusting to import competition and accessing export opportunities. The chapter also examines why using restrictive trade policy to redistribute gains from trade is often unsuccessful and can have unintended consequences, such as retaliation by trade partners. In contrast, domestic policies, such as education and social protection, are more effective in addressing inequality. Their importance is likely to grow as the digital revolution, climate change and geopolitics continue to shape the distributional impacts of trade.