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Assessing the impact of the EU-sponsored trade liberalization in the MENA countries The Euro-Mediterranean Integration Process The MENA countries have started their integration experience with the EU more than 30 years ago. In the 1960s and the 1970s preferential trade agreements including the first generation Association and Cooperation Agreements were signed with selected Mediterranean countries: Algeria (1973), Egypt (1972), Morocco (1969), Tunisia (1969) and Turkey (1963). These agreements unilaterally liberalized most EU imports from the MENA countries, while most MENA markets remained protected by high tariffs until the 1990s. 19 The Euro-Mediterranean Conference of Ministers of Foreign Affairs held in Barcelona on 27- 28 November 1995 has initiated the so-called Barcelona Process that represents a turning point in the relations between the EU and the MENA countries. In the Barcelona Declaration the EU and the MENA countries established the main objectives of the Barcelona Process, including the creation of the Euro-Mediterranean Free Trade Area by 2010. Together with the EFTA that forms together with the EU the European Economic Area, this zone is foreseen to become world’s largest market place that will eventually include about 40 countries and 800 million consumers. 20 The Barcelona Process has two complementary dimensions: bilateral and regional. The EU carries out a number of activities bilaterally with each country. The most important ones are the Euro-Mediterranean Association Agreements that the European Commission negotiates individually with particular MENA countries. These new generation agreements that replaced the previous Association and Cooperation Agreements signed in the 1960s and 1970s foresee bilateral trade in manufactured goods and progressive liberalization of trade in agricultural 19 The exception was Israel where reciprocity was required. 20 Included with the EU member states in this potential agreements were the following Mediterranean countries: Algeria, Cyprus (now the EU member), Egypt, Israel, Jordan, Lebanon, Malta (now the EU member), Morocco, the Palestinian Authority, Syria, Tunisia and Turkey while Libya has the observer status since 1999. 45
products. The provisions of the Euro-Mediterranean Association Agreements governing the bilateral relations contain the general principles common to all MENA countries as well as specific characteristics that vary across countries. Table 1. The Euro-Mediterranean Association Agreements Country Signature date Entry into force Algeria 22.04.2002 01.09.2005 Egypt 25.06.2001 01.06.2004 Israel 20.11.1995 01.06.2000 Jordan 24.11.1997 01.05.2002 Lebanon 17.06.2002 In process of ratification (Interim Agreement for early implementation of trade measures in force since 01.03.2003) Morocco 26.02.1996 01.03.2000 Palestinian Authority 24.02.1997 01.07.1997 (Interim association agreement) Syria Negotiations concluded awaiting for signature Tunisia 17.07.1995 01.03.1998 Turkey 06.03.1995 31.12.1995 Source: European Commission (2007). http://ec.europa.eu/external_relations/euromed/med_ass_agreements.htm With the conclusion of negotiations with Syria in 2004 the network of bilateral Association Agreements with the MENA countries has been completed (see Table 1). After the signature the agreements entered a lengthy ratification process by the national parliaments of the EU member states and the MENA countries. The Association Agreements came progressively into force in Tunisia (1998), Israel (2000), Morocco (2000), Jordan (2002), Egypt (2004) and Algeria (2005). 21 The Interim Agreements for early implementation of trade related matters are in force in the Palestinian Authority (1997) and Lebanon (2003). Moreover, special agreements establishing a customs union with the EU were signed with the European Mediterranean EU candidate countries: Cyprus, Malta and Turkey that entered into force before their accession into the EU. The EU enlargement on May 1, 2004 brought 21 The implementation of the trade part of the Association Agreement with Israel has started already on January 1, 1996. In our econometric study presented further in the text we also used year 1989 as the date when unilateral liberalization of Israeli imports of manufactured goods from the EU took place, however, the estimation results were very similar. 46 Sformatowano: Francuski (Francja)
Page 1 and 2: In collaboration with: F E M I S E
Page 3 and 4: Table of contents INTRODUCTION AND
Page 5 and 6: Introduction and summary In the pro
Page 7 and 8: that of the NMS, we would observe a
Page 9 and 10: accession to the EU. Instead, a num
Page 11 and 12: trade area (FTA). The Agadir Agreem
Page 13 and 14: liberalization has taken five years
Page 15 and 16: signed Europe Agreements, EFTA and
Page 17 and 18: used as industry organization varia
Page 19 and 20: The main goal of the project was to
Page 21 and 22: Chapter 1: Assessing trade liberali
Page 23 and 24: Agricultural Policy (CAP). Further
Page 25 and 26: Agreements concluded with the MPCs.
Page 27 and 28: n lnTijt = ∑ k= 1 β RTAijt + α1
Page 29 and 30: Preferential trade liberalization i
Page 31 and 32: the EU enlargement, the EFTA lost t
Page 33 and 34: The most important of these was the
Page 35 and 36: The Definitions of the Variables an
Page 37 and 38: Estimates for the whole CEE sample
Page 39 and 40: agreements is, however, mixed. Whil
Page 41 and 42: The OLS estimates suggest that both
Page 43 and 44: Czech Republic Estonia Hungary Lith
Page 45: Czech Slovak Republic Estonia Hunga
Page 49 and 50: foreseen to take effect in 2005. Ho
Page 51 and 52: Similar to the AMU, the ACC was for
Page 53 and 54: Unfortunately, the data on capital
Page 55 and 56: Table 2. The estimates for bilatera
Page 57 and 58: obust, while the dummy variable for
Page 59 and 60: Yi (partner) 0.944 1.009 2.267 1.96
Page 65 and 66: Agreements on the third countries a
Page 67 and 68: Chapter 2: Grossman-Helpman Model I
Page 69 and 70: N function (U ), given by: + ( ) u
Page 71 and 72: ti 1+ ti xi Ii −α i mi = ⋅ ,
Page 73 and 74: Probably the most extensive list of
Page 75 and 76: eginning of 1990. But the tariff st
Page 77 and 78: The non-preferential (MFN, conventi
Page 79 and 80: have important impact on political
Page 81 and 82: xi where ti is the tariff, ei is th
Page 83 and 84: We can recover the structural param
Page 85 and 86: Appendix Table 2 Estimation results
Page 87 and 88: Table 4 Estimation results using mo
Page 89 and 90: Testing Grossman-Helpman model for
Page 91 and 92: practice most importers do not pay
Page 93 and 94: countries were traditionally subjec
Page 95 and 96: point to notify the US government o
Page 97 and 98:
and between 157% and 247% in 2004.
Page 99 and 100:
policy reforms. On the other hand i
Page 101 and 102:
Table 1 Estimation results for Isra
Page 103 and 104:
1995 0.00202 [2.04]** -0.00199 [2.0
Page 105 and 106:
extended to disaggregation of burea
Page 107 and 108:
The Importance of Corruption A subs
Page 109 and 110:
transition countries. Sekkat and Ve
Page 111 and 112:
society. In addition, they show tha
Page 113 and 114:
Johnson, Kaufmann, McMillan, and Wo
Page 115 and 116:
corruption. For example, upon grant
Page 117 and 118:
and criminal prosecution. On the ot
Page 119 and 120:
estimation are likely to be influen
Page 121 and 122:
levels have been used to derive fur
Page 123 and 124:
Union. In fact, the level of regula
Page 125 and 126:
Table 2 List of the Commonly Raised
Page 127 and 128:
Table 6 Predicted improvement (show
Page 129 and 130:
SB_PR all procedures required to re
Page 131 and 132:
AFGHANISTAN, ALBANIA, ALGERIA, ANGO
Page 133 and 134:
Brunetti, Aymo; Kisunko, Gregory an
Page 135 and 136:
Hines, J.R. (1995). Forbidden Payme
Page 137 and 138:
PellegriniI, Lorenzo and Gerlagh, R
Page 139:
World Bank (2005). Doing Business i
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