PDF, GB, 139 p., 796 Ko - Femise
PDF, GB, 139 p., 796 Ko - Femise
PDF, GB, 139 p., 796 Ko - Femise
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Introduction and summary<br />
In the project we compared the depth of trade liberalization and integration with the EU<br />
between the MPCs (Mediterranean Partner Countries) 1 and NMS (New Member<br />
States) 2 . We analyzed trade implications of preferential arrangements between MPCs<br />
and EU in the framework of EUROMED and between Central and East European<br />
countries in the frameworks of BAFTA (Baltic Free Trade Area) and CEFTA (Central<br />
European Free Trade Area) and so called Europe Agreements. This analysis<br />
demonstrated that Europe Agreements and two sub-regional agreements BAFTA and<br />
CEFTA have been efficient in promoting bilateral trade among European states. We<br />
find that the Europe Agreements as well as BAFTA and CEFTA significantly<br />
contributed to increase in both bilateral exports and imports of the CEE countries. In<br />
contrast to the NMS the impact of New Association Agreements concluded with the<br />
MPCs had been much more limited. We find that while the new Agreements increased<br />
significantly imports of the MPCs countries from the EU, they had no impact on their<br />
exports to the EU which can be attributed to the asymmetry in trade liberalization<br />
between the EU and the MPCs. In particular, liberalization of the EU imports from the<br />
MPCs was a gradual process that extended over the last thirty years and there was not<br />
much to liberalize in the 1990s while liberalization of the MPCs imports from the EU<br />
took place much faster and its scope was much bigger.<br />
Differences in growth rates may stem from differences in trading arrangements of these<br />
two regions with the EU-15 and institutional factors within these regions. Despite the<br />
similar openness ratio, MPCs maintained (with the exception of Israel) considerably<br />
higher levels of trade protection in comparison to NMS. Higher levels of protection,<br />
causing production and consumption distortions, can slow down the rate of growth of<br />
economies.<br />
1<br />
The group MPCs consists of: Algeria, Cyprus, Egypt, Israel, Jordan, Lebanon, Malta, Morocco, the<br />
Palestinian Authority, Syria, Tunisia and Turkey<br />
2<br />
The group of NMS consists of: Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia<br />
and Slovenia and Cyprus and Malta. In our project we analyze only first eight countries.<br />
4