An economic perspective on free trade integration in the Euro-Mediterranean partnership

Abstract

The basic strategy employed by the Barcelona Process is based upon the premise that free trade and internal economic liberalization will initially effect domestic investment, productivity and foreign direct investment in the South. A free trade area with the European Union can be perceived as a means of anchoring the Mediterranean economies into the global economic structure, but the economic realities and North-South disparities that prevail will make it impossible for the South to benefit from this arrangement. Exploring the viability and feasibility of this Euro-Mediterranean free trade area is the objective of this thesis. The Southern Mediterranean economies are being shaped by forces beyond their control and arc in need of a significant shift in the mentalities of their societies away from a massive dependency on the EU. Research and data for this thesis has been extracted from a variety of sources, including international economic and financial agencies, literature books and various empirical studies. The findings reveal that Tunisia has experienced moderate positive economic outcomes but EU protectionism and dependency has continued to hinder its ability to exploit its maximum potential. The Euro-Mediterranean Partnership must be restructured to allow unfettered trade between all its participants, and to enable the Mediterranean partners to flourish and progress as robust, competitive entities within the international economy. Only then can the Southern Mediterranean region be perceived as a rightful economic partner of the EU and the Euro-Mediterranean Partnership regarded as a true 'Partnership of Equals'.