Urata and Kiyota (2003) have shown the positive effects of a free trade agreement in East Asia on the GDP and well-being of member states. Mr. Rotunno (2016) noted that after the unexpected departure of their leaders, countries are more inclined to sign free trade agreements when political instability is high. Shujiro and Misa (2007) used the estimation of a gravity equation to detect the impact of free trade agreements on bilateral trade flows, i.e. trade and diversion effects. The results of this analysis have shown that free trade agreements have an effect on business creation and that the effect of trade diversion is limited. Based on a well-known GTAP model, Qi and Zhang`s (2018) study attempts to assess the economic impact of ChAFTA not only on the Australian and Chinese economies, but also on the rest of the world. The results show that full or even partial implementation of ChAFTA would allow China and Australia to benefit significantly from increased gdp growth rates, exports, factor prices and economic well-being. On the other hand, the rest of the world could suffer from such a ChAFTA, as there will be some trade diversion effect. Beghin JC, Maertens M, Swinnen J (2015) Nontariff measures and standards in trade and global value chains. Annu Rev Resour Econ 7(1):425-450 United Arab Emirates, Saudi Arabia and Pakistan share the common faith of Islam and Arab culture. .