2013年-CEPS欧洲政策研究中心_Economic_Integration_in_the_Euro_185页_779kb

Summary of the Euro-Mediterranean Economic Integration Study

Core Content

This report evaluates the economic integration of the Euro-Mediterranean (Euro-MED) region, focusing on the effects of the Euro-Mediterranean Free Trade Agreement (FMTA) and the broader Barcelona Process on trade and investment. It provides a comprehensive analysis of trade patterns, non-tariff barriers (NTBs), business perceptions, and key sectors, with a special emphasis on the five Mediterranean countries (MED5): Egypt, Israel, Jordan, Morocco, and Tunisia.

Main Points

1. Overview of Euro-MED Relations

• The Euro-MED relations have been guided by the Barcelona Process since the mid-1990s, aiming to create a free trade area.
• The process has included several Association Agreements (AAs) with Mediterranean countries.
• Progress has been slow, and the integration is still characterized by shallow agreements. Efforts are underway to move toward deeper integration through harmonization of regulatory frameworks.

2. Trade Effects of Euro-MED Integration

• The study finds that the impact of the AAs on trade is still limited, with only Egypt and Tunisia showing increased trade with the EU.
• The trade between MED countries is low but growing, suggesting potential for future development.
• The potential for trade diversion is limited, but trade re-orientation is possible due to the alignment of preferences with the US, especially in Egypt and Israel.
• The current level of intra-industry trade (IIT) in the Euro-MED region is low, indicating limited market integration.

3. Non-Tariff Barriers (NTBs)

• NTBs remain a significant constraint on trade, especially in technical standards, sanitary and phyto-sanitary (SPS) measures, customs procedures, competition policy, and intellectual property rights (IPR).
• The harmonization of standards with the EU is in progress but not complete. Only Israel has concluded an Agreement on Conformity Assessment and Acceptance of Industrial Products (ACAA) and signed a Mutual Recognition Agreement (MRA) with the EU.
• The application of SPS measures is often inconsistent and inefficient, with ad hoc procedures and excessive documentation.

4. Investment Analysis

• The Euro-MED region does not attract significant EU investment flows, which are still resource and market seeking.
• Business climate indicators suggest that MED countries (except Tunisia, Turkey, and Israel) have room for improvement in attracting foreign direct investment (FDI).
• The study indicates that the FTA has not significantly impacted trade with the EU for most MED countries, suggesting it is too early to observe effects.

5. Business Perceptions

• EU businesses perceive tariff and quota elimination, and increased business opportunities as major achievements of the AAs.
• However, they still face high bureaucratic constraints due to quantitative barriers.
• MED businesses note the benefits of the integration, such as increased opportunities and credit availability, but also highlight the challenges posed by customs procedures and NTBs.
• There is a notable lack of information among businesses about the opportunities created by the agreements.

6. Key Sectors

• Textiles, machinery and transport equipment, chemicals, and services are identified as the most important sectors for future deep FTA negotiations.
• The textile sector, while traditional, is declining in importance as the region moves toward capital-intensive industries.
• The chemical and machinery sectors, along with services, are expected to drive long-term growth in the Euro-MED region.

7. Strengths and Weaknesses of the FTA

• The FTA has not yet had a measurable impact on trade due to the lengthy time frame for tariff reductions and the presence of exemptions.
• The sectoral coverage is limited, particularly in agriculture and services.
• NTBs continue to hinder trade, and the business environment lags behind that of other regions.

8. Policy Recommendations

• The EU should support MED countries in effectively implementing the commitments made under the AAs.
• A distinction should be made between measures aimed at market access (tariffs, rules of origin, standards, and SPS) and those aimed at improving the business environment.
• The report recommends enhancing the Pan-Euro-Med system of diagonal cumulation, streamlining procedures, and creating appeal mechanisms.
• Technical standards and SPS harmonization across countries should be further developed, with a focus on labelling and packaging requirements.
• Expanding the Trade and Investment Facilitation Mechanism (TFM) to include more support for businesses, such as better information and facilitation tools, is recommended.

Key Information

• The study was conducted from December 2008 to September 2009 under the European Commission's contract (TRADE08/C2/C16).
• It was carried out by a consortium of the Center for Social and Economic Research (CASE) and the Centre for European Policy Studies (CEPS).
• The report includes a business perception survey, sectoral analysis, and an assessment of NTBs and trade patterns.
• The analysis of the business climate and investment flows highlights the need for improvement in regulatory and institutional frameworks.

Conclusion

The Euro-MED integration process is at an early stage, with limited trade and investment impacts observed so far. While some progress has been made, particularly in tariff reductions and customs reforms, NTBs and institutional inefficiencies continue to pose challenges. The study identifies key sectors for future development and provides policy recommendations to enhance the effectiveness of the integration process. The focus on improving the business environment and deepening market access through harmonization is critical for the success of future Euro-MED agreements.