Impact of European Union Assocation Agreements on Mediterranean Countries
IMF Working Papers, August 1, 1998
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Bibliographic details
- Authors: Henri C. Ghesquière
- Published: August 1, 1998
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451942477.001
Summary
- By establishing free trade for industrial products in 12 years, the European Union’s Association Agreements with countries in the Mediterranean region seek to promote accelerated economic growth.
- This paper reviews the literature and evaluates the economic benefits and costs for Tunisia, Morocco, Lebanon, Egypt, and Jordan.
- It concludes that the benefits could be substantial, but only if accompanied by deep supplementary reforms, including:
- extending trade liberalization to services and agriculture and on a multilateral basis,
- improving the environment for foreign direct investment,
- ensuring an adequate fiscal and exchange rate policy response,
- strengthening European Union assistance.
Major Findings
- Scope: Focus on Tunisia, Morocco, Lebanon, Egypt, and Jordan.
- Timeframe: Free trade for industrial products established over 12 years under the Association Agreements.
- Potential outcome: Substantial benefits contingent on complementary reforms and policy responses.
- Subject areas covered: Exports, Imports, International trade, Tariffs, Taxes, Trade agreements, Trade liberalization.
Policy Recommendations and Required Reforms
- Extend trade liberalization to services and agriculture.
- Pursue trade liberalization on a multilateral basis.
- Improve the environment for foreign direct investment.
- Ensure an adequate fiscal and exchange rate policy response to liberalization.
- Strengthen European Union assistance to partner countries.
Keywords
- Eastern Europe, Eastern Mediterranean country, economic reform, EU agreement, EU company, EU consumer, EU exporter, EU imports, Europe, European Union, Exports, free trade, Imports, Mediterranean countries, SEM country, SEM government, Tariffs, Trade agreements, trade creation, trade diversion, Trade liberalization, WP
IMF Working Papers. Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy.
Content in this bundle
- Impact of European Union Assocation Agreements on Mediterranean Countries - WP/98/116