This chapter focuses the institutionalization of the political economy of Arab regionalism through the creation of regional institutions aiming at promoting the free circulation of goods in the Arab region. It also discusses how regionalism finds in the vocabulary available in the realm of political economy its horizon of possible speech and, consequently, its horizon of possible action. The chapter presents why GAFTA has the potential to overcome the limits of its predecessors and become a truly trade "creators" in the Arab region. The chapter refers the role Agadir plays in the Arab region making process as far as free trade is concerns. The chapter contains the agreement between Jordan, Egypt, Tunisia and Morocco. The Agadir Agreement can reverse these negative effects of the Euro-Med Partnership promoting the political rapprochement of at least the two most developed AMU states via economic cooperation. The chapter describes the LAS' saga to promote forms of economic cooperation in the Arab region was narrated.