Directorate-General for Trade

Euromed

Euro-Mediterranean trade relations are healthy and growing

Trade growth has been strengthened by the Euro-Mediterranean partnership. Launched in 1995, the partnership aims to establish a common area of peace, stability, and shared prosperity in the Mediterranean region (the 'Barcelona Process').

One important objective is the creation of a Mediterranean free trade area by 2010, with substantially liberalised trade both between the EU and the Mediterranean region, and between the Southern Mediterranean countries themselves. The launch of the European neighbourhood policy in 2004 moved this process a big step forward.  

Bilateral EU–Mediterranean relations

Apart from Syria, every Mediterranean country in the Euro-Mediterranean partnership has concluded Association Agreements with the EU:

Euromed Association Agreements [Situation June 2009]

Country	Status	Date signed	Entry into Force	Reference
Algeria	Signed	April 2002	September 2005	OJ L 265
Egypt	Signed	June 2001	June 2004	COM (2001) 184 final
Israel	Signed	Nov 1995	June 2000	OJ L 147
Jordan	Signed	Nov 1997	May 2002	OJ L 129/02
Lebanon	Signed	June 2002	Interim Agreement March 2003	COM (2002) 170 final
Morocco	Signed	Feb 1996	March 2000	OJ L 70/00
Palestinian Authority	Signed	Feb 1997	Interim Agreement July 1997	OJ L 187/97
Syria	Initialled (December 2009)
Tunisia	Signed	July 1995	March 1998	OJ L 97/98
Turkey	Customs Union January 1996	Customs Union	Customs Union	OJ L 35/96

Associated countries enjoy duty free access to the EU market for manufactured goods and preferential treatment for exports of agricultural, processed agricultural and fisheries products. Tariffs will gradually be dismantled for EU exports to the Mediterranean region – the process has already been completed in Tunisia.

The objective is substantially liberalised trade in goods and services between the EU and its Mediterranean partners, who already enjoy very open access to EU services markets. Further progress, including attracting new investment to the region, is being negotiated.

Euro-Mediterranean trade relations will focus on bringing the Mediterranean partners' regulatory procedures closer to EU rules, to facilitate access to the EU market and remove non-tariff barriers to trade.

Regional integration

Another key goal is regional economic integration between the different Mediterranean countries, which have one of the lowest levels of regional integration in the world. Only 5% of trade is with neighbouring economies.

The Mediterranean region is already working to strengthen mutual trade relations:

• the 2007 Agadir Free Trade Agreement between Tunisia, Morocco, Jordan, and Egypt remains open to other countries in the region
• Israel and Jordan have signed a Free Trade Agreement
• Egypt, Israel, Morocco, the Palestinian Territories, Syria and Tunisia have signed bilateral agreements with Turkey.
• Negotiations are underway between other Mediterranean countries to establish similar agreements.

Technical assistance

The Mediterranean region receives considerable funding from the EU. Since the first MEDA programme was launched in 1995 – to provide financial and technical assistance for implementation of the Association Agreements and key social and economic reforms – some €20bn of EU funding has been allocated to bilateral and regional projects:

• MEDA I (1995-99): €3.4 billion
• MEDA II (2000-06): €5.3 billion
• €12 billion has been allocated by the European Neighbourhood and Partnership Instrument (ENPI) for 2007-13.

The European Investment Bank (EIB) is the other important source of funding for the Euro-Mediterranean Partnership. EU allocations to the EIB were:

• €4.8 billion for 1995-99
• €6.4 billion for 2000-07, plus €1 million for transnational projects

The creation in 2002 of the facility for Euro-Mediterranean investment and partnership (FEMIP) boosted the EIB's activities in the Mediterranean, with an annual credit reserve of €2bn to support the private sector.