European Commission : Trade : Libya (Bilateral relations)

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Libya

In 2010, ahead of this year's Arab Spring and the popular uprising in Libya, the EU was an important trading partner with Libya accounting for 70% of its total trade which amounted to approximately €35.5 billion. The EU was Libya's major source of imports and its largest market for exports in 2010.

Relations between the European Community and Libya have so far taken place outside a bilateral legal framework governing bilateral relations. The negotiations on a Framework Agreement between the European Union and Libya that started in November 2008 aimed at including a Free Trade Agreement covering trade in goods, services and investment. This FTA was expected to provide new export opportunities and higher legal predictability for EU exporters, mainly in services and establishment, public procurement and gas and oil markets.

Following the early 2011 events in Libya, the negotiations were suspended in February 2011. Moreover the EU introduced restrictive measures compounding implementation of the UNSC Resolution 1970 (2011), such as an arms embargo, a ban on exports of equipment which might be used for internal repression, the freezing of funds and economic resources of persons responsible for repression against the civilian population and entities holding sizeable assets controlled by the Khadafy regime.

Libya has an observer status in the Euromed partnership and, though being eligible geographically, does not take part at present in the European Neighbourhood policy (ENP).

Trade in goods

EU goods exports to Libya 2010: €6.8 billion
EU goods imports from Libya 2010: €28.8 billion

EU imports in 2010 from Libya consisted notably of energy (98,5% ), in particular petroleum and petroleum products (88,8% ) amounting to €25.6 billion. EU exports in 2010 to Libya consisted mainly of machinery and transport equipment (42,4%), agricultural products (11,1%) and other semi-manufactures (6,8%). In 2010 Libya occupied rank number 11 in EU's imports and ranked number 19 in the EU's major trade partners..

Trade in services

No figures available for 2010.

Foreign Direct Investment

In 2010 FDI inflows into Libya from the world amounted to € 2.9 billion, outflows to € 1billion.

More statistics on Libya

South-South integration

Libya is part of the Arab Maghreb Union and a funding member of the African Union.

The European Neighbourhood Policy

Libya has an observer status in the Euromed partnership and - though being eligible geographically - has so far not taken part in the European Neighbourhood Policy (ENP). Concluding an FTA with Libya would increase the coherence of the EU's trade policy in the region closing the gap in the establishment of the Euromed free trade zone (Libya is the only Mediterranean country - with the exception of Syria- not having concluded an FTA with the EU).

The European Neighbourhood and Partnership Instrument (ENPI) will provide support to Libya for the implementation of the Framework Agreement and for the strengthening of EU-Libya bilateral relations. Therefore, the European Commission has prepared the first Country Strategy Paper for Libya, including the National Indicative Programme, for the period 2011 - 2013.

WTO

Libya is not a WTO member, but negotiations for its accession have started in 2004. The negotiation of the Framework Agreement on trade was due to pave the way for Libyan WTO accession..