The integration of countries, especially in today’s world, is a vital requirement to steer the country ahead. As a result, countries in Asia have formed a trading bloc known as PAFTA to gain economic advantages. This integration is necessary to perpetuate a strong bargain power while trading with countries outside the bloc. The purpose of this paper is to show the change that was brought about by the formation of the PAFTA and how Egypt, a PAFTA member, has benefited from the bloc.
Generally, after the formation of PAFTA in 2005, the trade tariffs were eliminated thus enabling the countries to trade more profitably thus ensuring that both exports and imports were benefitting the countries equally without any country having the upper hand. According to Yousef (2017), the establishment of the PAFTA resulted in a dynamic change in how the trade was conducted among the countries’ members. In accordance with the research conducted by Alkhateeb (2017), he contended that with the establishment of the PAFTA the trade imbalance will not be offset among the trading members since there are still countries not well endowed with the resources to compete in favorable terms with the others.
Egypt is competitively involved in many intra, and as a result, it has secured many trading countries. Consequently, the country has gained a firm grip in the region by exporting natural gas as its major commodity into the countries in the bloc.
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Being one of the leading exporters of this commodity in the world, Egypt has enjoyed vast market averaging $3.5 million in exporting natural gases (Michael, 2018). However, it is not the leading exporter of this commodity. Countries such as Yemen exports 240 metric tons of natural gas. There has been a top trend change in the export of natural gas.
Yousef Alkhateeb, T. T., Ajina, A. S. M., & George, S. G. V. (2017). Egyptian Intra Agriculture Trade with GAFTA Members: Reilly? Law of Retail Gravitation and Marketing Effects.
Alkhateeb, T. T. Y., Ajina, A. S., George, S., & Mahmood, H. (2017). Egyptian Intra Agriculture Trade with GAFTA Members: Reilly’s Law of Retail Gravitation and Marketing Effects. INTERNATIONAL JOURNAL, 14(9), 137-147.
Michael, J. N. (2018). The Dynamic Relationship between Stock Prices and Exchange Rate–An Egyptian Experience.
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