ALESC accepts Yemen request to extend custom discounts period on

SANA'A, Sep 12 (Saba) - General director of the foreign trade
department at the Industry and Trade ministry Fadl Muqbil said the
Arab League Economic and Social Council (ALESC) has accepted a
Yemeni request to extend the period of custom discounts on Arab
goods imported to the country till 2015.

According to the decision made by the council last meeting held in
Cairo, the period will end in 2015 instead of 2012.

Muqbil said the council earlier approved a Yemeni request to
exclude it from the rest custom discounts provided by an agreement
to facilitate trade exchange among the Arab countries until 2015.

This depends on the council decision No. 1707 for 2007 and that
provides for asking for economic impacts caused to national industry
due to gradual discounts of custom fees started in 2005 by 16
percent annually and that are expected to reach zero in 2010.
However, the council approved the period to be extended to 2012.

He said the council last meeting discussed non-custom chains
represented by taxes and custom fees within the Big Arab Free Trade
Zone aimed at alleviating these fees as well as specifications and
measures of custom goods that hinder the increase of Arab trade
exchanges.

The meeting also tackled the problems facing the flow of goods
between Yemen and Arab states, Muqbil added, pointing out that
Yemen's foreign trade was 70.7 percent of national production in
2007.

On the measures for Yemen's joining to the Big Arab Free Trade
Zone, Muqbil said Yemen has completed three stages of implementation
of agreements on the accession, affirming Yemen will by 2010
implement all related agreements.

The Arab Monetary Fund allowed Yemen to down its custom fees on
Arab goods by 16% annually starting from 2005, however, starting
from 2010 it will down these fees by 20%.

The trade value between Yemen and Arab countries reached in 2007 YR
687.802 billion compared to YR 510 billion in 2006.

Yemen exports to Arab countries products such as fish, fruits,
leathers, honey, coffee, cotton and earthen products. And it imports
wheat, rice, fuel, trucks, drugs, sugar, chickens, cement, fabrics
and livestock.

Analysts say the increase in trade value between Yemen and Arab
countries is due to Yemen's economic openness within the Big Arab
Free Trade Zone agreement which was signed by 17 Arab states and
that was put into effect in 2005.

It provides for exempting Arab goods from custom fees from 40 to
45%, except those identified as unfair products.