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Description

The Arab countries of the southern Mediterranean rim have long suffered from economic stagnation and an increasing marginalization in the global economy. Deeper economic integration with the enlarged European Union - accounting for a quarter of global GDP and foreign direct investment - could become a main driver for economic development in the southern Mediterranean countries. The planned Euro-Mediterranean free trade area for goods is a first step into that direction, but additional measures are needed to translate geographic proximity into economic growth; especially, the removal of non-tariff barriers, the liberalization of services trade, and comprehensive behind-the-border policy reforms. The European Neighborhood Policy, launched in 2003, could provide an appropriate policy framework for an integration strategy between the EU and its southern periphery. This title analyzes the adjustment needs and policy options associated with deeper integration between the two sides of the Mediterranean Sea. It puts specific emphasis on the dynamics of deeper integration at the company level, including issues such as outward processing trade, supply-chain integration, and the outsourcing of back-office functions. In addition to a general discussion of deeper integration and trade in services liberalization, the title also contains a detailed assessment of individual sectors - especially the backbone services (e.g. transport, telecommunication, financial markets, electricity) and other markets of particular relevance for deeper integration (e.g. tourism, IT-enabled services, distribution services). Even though the main focus is on regional integration, the title also factors multilateral liberalization issues into its analysis (e.g. the GATS, the WTO Doha Round) as well as options for the pursuit of an open regionalism.