Economic Integration in the Euro-Mediterranean Region

Abstract

This study on the economic integration of the Euro-Med region was conducted from December 2008 to September 2009 under contract with the European Commission (TRADE08/C2/C16). The study provides quantitative, qualitative and sectoral assessments of the impacts of the Euro- Mediterranean free trade area on trade and investment in order to clearly evaluate which effects for the EU and the Mediterranean region the partnership brought so far. In this context, particular attention is given to South-South integration, e.g. the Agadir Agreement. The study suggests future actions and instruments to be taken to address the weaknesses of the Euro-Mediterranean partnership focusing mainly on the most active partners of the Euro-Mediterranean FTA i.e. Morocco, Tunisia, Egypt, Jordan and Israel (MED5), with a view of realizing the goal of a well functioning FTA by 2010 and beyond. The study defines the opportunity of pursuing additional negotiations on a number of non tariff and regulatory issues with a view to establish deep and comprehensive free trade agreements in the Euro-Mediterranean region.

Keywords: EU, Mediterranean, Regional Integration, Non-Tariff Barriers, International Trade, Investment, Business Perception Survey

JEL Classification: F15, M38, P33