| Encouraging South-South cooperation |
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Author: Michele Comelli, Senior Fellow, IAI
Researcher: Michele Comelli, Senior Fellow, IAI
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There are different attempts at promoting the four freedoms of movement in the Mediterranean, such as the Euro-Mediterranean Free Trade Area, the Agadir Process, the Pan Arab Free Trade Area (PAFTA) or Greater Arab Free Trade Area (GATFA).
As far as trade between the EU and Egypt
As for South-South trade relations, Egypt ’s trade with other Southern Mediterranean countries is very low: as an example, trade with Agadir countries account for less than 2% of the total foreign trade. The point is that Southern Mediterranean countries have very similar production structures, non-tariffs barriers remain important and harmonisation is insufficient. However, an agreement on mutual recognition has been recently signed.
When it comes to the free circulation of services, negotiations between the EU and Egypt Egypt
As for the free circulation of people, bilateral agreements are more important than bilateral ones. For example, Egypt has concluded two agreements with Italy
The bilateral basis seems to be the rule also with regard to South-South co-operation on the free movement of people. In fact, the agreements in force are between Egypt and single Mediterranean countries, therefore not encompassing the whole Southern Mediterranean . These agreements are important because many Egyptian workers are employed in other Southern Mediterranean States, such as Yemen , Syria , Jordan , Libya
The impact of the EU on the sub-regional frame
The EU encouraged South-South cooperation and particularly the Agadir Free Trade Agreement. However, the importance of trade with the other Agadir countries is very limited for Egypt
It must also be taken into account that Egypt Egypt has in force other free trade agreement with countries such as Turkey and regional blocs such as COMESA and they are independent of Egypt
Achievements and failures of sub-regional cooperation
Achievement: The EU is perceived to be changing approach all the time and being ambivalent over the choice for a bilateral or multilateral approach. On top of that, the Union for the Mediterranean has added a new institutional layer to existing relationship between the EU and Southern Mediterranean countries. The best solution would probably be to have a regional framework and within it a bilateral implementation.
Failure: Maritime co-operation is not working well because the sector is subject to too many restrictions. Egypt
In any case, the EU has had an indirect positive effect through the Association Agreements with Southern Mediterranean countries because they contributed to harmonization of rules and standards between the two shores of the Mediterranean and among Southern Mediterranean countries. Therefore, even though EU standards are sometimes difficult to adapt to, the overall balance is positive.
