European Commission 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 with the 'Barcelona declaration', the partnership aims to establish a common area of peace, stability, and shared prosperity in the Euro-Mediterranean region. In 2004, the launch of the European Neighborhood Policy (ENP) moved this process a big step forward. In 2008, the 'Barcelona Process' has been revamped with the creation of the 'Union for the Mediterranean'.

The key objective of the trade partnership is the creation of a deep Euro-Mediterranean Free Trade Area, which aims at substantially liberalising trade between both the EU and Southern Mediterranean countries (North-South), and Southern Mediterranean countries themselves (South-South).

Bilateral EU–Mediterranean relations

While the Union for the Mediterranean is the main regional forum, EU-Southern Mediterranean relations at bilateral level are managed mainly through the Euro-Mediterranean Association Agreements.

Apart from Syria, every Mediterranean country that belonged to the Euro-Mediterranean partnership (now integrated in the Union for the Mediterranean) has concluded Association Agreements with the EU. Libya belongs to the Union for the Mediterranean, but was not a member of the Euro-Mediterranean Partnership: negotiations are currently on-going on a Framework Agreement between the European Union and Libya, they have started in November 2008.:

Euromed Association Agreements [Situation August 2011]

Country	Status	Date signed	Entry into Force	Reference
Algeria	Signed	April 2002	September 2005	OJ L 265
Egypt	Signed	June 2001	June 2004	OJ L 304
Israel	Signed	Nov 1995	June 2000	OJ L 147
Jordan	Signed	Nov 1997	May 2002	OJ L 129/02
Lebanon	Signed	June 2002	April 2006	OJ L 143/06
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 2008)
Tunisia	Signed	July 1995	March 1998	OJ L 97/98
Turkey	Customs Union January 1996	Customs Union	December 1995	OJ L 35/96

These agreements, which cover essentially trade in goods, are being complemented with a number of additional negotiations to open up additional agricultural trade, liberalise trade in services and investment, as well as establish bilateral dispute settlement mechanisms for trade matters.

The way forward is set by the Euro-Mediterranean Trade Roadmap beyond 2010, which has been generally endorsed at the 8th Union for the Mediterranean Trade Ministerial Conference (Brussels, December 2009). Its main objectives are to:

• complete and reinforce the network of Free Trade Agreements in the Euro-Mediterranean Region (North-South and South-South);
• implement concrete initiatives to bring the Euro-Mediterranean trade partnership closer to the business;
• turn the Association Agreements and South-South Agreements into a deep and comprehensive Euro-Mediterranean Free Trade Area.

Regional integration

Deepening South-South economic integration is a key goal of the Euro-Mediterranean trade partnership. It is an essential element towards the establishment of a fully fledged Free Trade Area. However, regional economic integration between Southern Mediterranean countries is still limited: total intra-regional trade amounted to €15 billion in 2009, one of the lowest levels of regional economic integration in the World.

The EU supports the strengthening of trade relations amongst Southern Mediterranean countries:

• the Agadir Agreement between Tunisia, Morocco, Jordan, and Egypt, in force since 2007, remains open to other Arab Mediterranean countries;
• 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.

Euro-Mediterranean Cooperation

The EU works closely with each of its Southern Mediterranean partners to support economic and social transition and reform, taking into account each country’s specific needs and characteristics. These programmes are funded under the European Neighbourhood and Partnership Instrument (ENPI) according to the priority objectives identified in the Regional and Country Strategy Papers in order to support the achievement of key policy goals outlined in the 'Action Plans' that each country has adopted with the EU.

The European Investment Bank (EIB) is also providing support to the economic development and the integration of Southern Mediterranean partner countries. The creation in 2002 of the facility for Euro-Mediterranean investment and partnership (FEMIP) boosted the EIB's activities in the Mediterranean. FEMIP is now a key player in the financial partnership between Europe and the Southern Mediterranean region and has invested €10 billion between October 2002 and December 2009.