Sub‐regional integration in the MENA region and the euro‐mediterranean free trade area

1999

The creation of a new Euro‐Mediterranean region in which to build a shared prosperity area requires existing North‐South economic integration to be complemented by South‐South trade liberalization. Trade links among the southern and eastern Mediterranean countries have remained at a very low level. There is room for greater commercial integration, although the scope for an increase in intra‐regional trade volume is limited. Trade liberalization could lead to a relocation of resources according to comparative advantage and to the growth of intra‐industry trade. However, some economic instruments are required both in order to allay political fears and in order to upgrade transport, communicat…