PREVIEW: Regional politics overshadow Arab economic summit agenda

By Nehal El-Sherif Jan 17, 2011, 11:48 GMT

Sharm el-Sheikh, Egypt - Regional political developments are expected to overshadow the second Arab Economic, Development and Social Summit on Wednesday, despite indications to the contrary from organisers.

The gathering of 22 Arab League nations in the Red Sea resort of Sharm el-Sheikh in Egypt is a follow-on to the summit held in Kuwait two years ago. It is aimed at fostering economic cooperation and regional integration.

During a preparatory meeting on Sunday, all eyes were on the empty seats of the Tunisian delegation. But deputy Arab League chief Ahmed ben Heli was quick to explain to those attending that they were delayed by 'a road accident'.

Later in the day, he announced that Tunisian Foreign Minister Kamal Merjan, heading the delegation, would provide an update on developments in the North African country in the wake of the abrupt departure of longtime leader Zine el-Abidine ben Ali.

On Monday, Arab League Secretary General Amr Moussa had to contend with the constant bleeping of his mobile phone while addressing trade ministers.

'I cannot switch off my mobile because the situation in the region is grave. I keep getting calls from east, west and south,' Moussa said apologetically.

The situation in Tunisia, as well as the political crisis in Lebanon and the steps towards the division of Sudan into two countries have dominated in the days before the summit.

But ben Heli has insisted that discussion on these issues will be confined to the sidelines of the summit.

'Developments in the region impose itself since leaders and foreign ministers are gathering, and consequently they will discuss everything on the sidelines of the summit,' he said.

Arab leaders are meant to focus on the implementation of initiatives adopted in Kuwait, to reinforcing inter-Arab trade and develop infrastructure.

Two new topics on the agenda in Sharm el-Sheikh being land and maritime projects, organisers said.

Business leaders are expected to push for a customs union, service liberalisation, open skies and the free movement for individuals and goods.

Delegates are also expected to follow up on a proposal from the Kuwait meeting for a 2-billion-dollar fund to provide loans to joint small and medium sized projects. Around 1.3 billion dollars has reportedly been raised for the fund.

Over the last month, economic problems and unemployment in Tunisia sparked the protests that toppled the government.

'All what we are witnessing reveals the importance of the economic file because all Arab countries are facing a lot of challenges,' Egypt's Trade and Industry Minister Rashid Mohamed Rashid said.

While no major steps have been taken over the past two years for trade liberalisation or economic integration among Arab League members, negotiations on rail services and links were underway, Rashid added.

He said three inter-Arab rail projects, two of which connect Gulf countries and a third that would reach into North Africa, are already in the pipeline.