Countries and regions
Relations between the European Community and Libya have so far taken place outside a bilateral legal framework governing bilateral relations.
The negotiations for a Framework Agreement between the EU and Libya started in November 2008. The aim was to include a Free Trade Agreement covering trade in goods, services and investment. This would provide new export opportunities and higher legal predictability for EU exporters, mainly in areas such as services and establishment, public procurement and gas and oil markets.
However, following the events in early 2011 in Libya, negotiations were suspended in February 2011.
Libya is the only Mediterranean country - with the exception of Syria – that has not yet concluded a Free Trade Agreement with the EU.
Libya is not a WTO member. Negotiations for Libya's accession to the WTO started in 2004. The negotiation for the Framework Agreement on trade between the EU and Libya would have paved the way for Libyan WTO accession.
- EU imports from Libya are dominated by energy, in particular petroleum and petroleum products.
- EU exports to Libya consist mainly of fuels and mining products, machinery and transport equipment, and agricultural products.
- In 2010, before the Arab Spring and the popular uprising in Libya, the EU was an important trading partner for Libya accounting for 70% of the country's total trade, which amounted to approximately €35.5 billion in 2010.
- The EU was Libya's major source of imports and its largest market for exports in 2010.
- Despite the decrease in trade during 2011, the EU-Libya trade relationship is confirmed by 2011 statistics: Libya continues to be a fundamental energy exporter to the EU.
EU-Libyan Arab Jamahiriya "trade in goods" statistics
|Year||EU imports||EU exports||Balance|
EU and Libya
- Though being eligible geographically Libya does not at present take part in the European Neighbourhood Policy. However, it is eligible for development funding under other instruments.
Concluding a Free Trade Agreement with Libya would increase the coherence of the EU's trade policy in the region by closing a gap in the establishment of the Euromed free trade zone.
Libya and Syria are the only Mediterranean countries that have not yet concluded a Free Trade Agreement with the EU.
Libya in Euromed
Libya has an observer status in the Euromed partnership.
The Euro-Mediterranean Partnership (Euromed) promotes economic integration and democratic reform across 16 neighbors to the EU’s south in North Africa and the Middle East. One important part of this work is to achieve mutually satisfactory trading terms for the Euromed region partners.
Trading with Libya
- Rules and requirements for trading with Libya
- Trade relations are part of the EU's overall political and economic relations with Libya
- Libya submitted an application to join the WTO in July 2004
- Sustainable impact assessment of the EU-Libya Free Trade Agreement (FTA)
- Sustainable impact assessment of the Euro-Mediterranean Free Trade Area (EMFTA)